Freedom of contract in license agreements: In principle, the patent holder alone decides whether to grant a license. Use without a license constitutes patent infringement.

The compulsory license balances the interests between the patent holder and the general public: it prevents market blockages by the holder, but also protects against abusive use by the licensee.

A compulsory license may be granted if the patent holder does not make sufficient use of their invention, resulting in a shortage of important goods (e.g., medicines).

Crisis situations: Particularly relevant in national emergencies, such as shortages of medicines or medical equipment.

Antitrust law/SEPs: In the case of standard-essential patents (e.g., LTE, GSM, DVD), there is an obligation to grant FRAND licenses.

Refusal/excessive fees: If the owner refuses to grant licenses or demands excessive fees, the party wishing to use the patent can sue for a compulsory license.

Obligation to negotiate: The party wishing to use the patent must make a serious effort to obtain a license; otherwise, the right to injunctive relief remains.

Remuneration: Compulsory licenses are never free of charge; remuneration is determined either contractually or, in the event of a dispute, by a court.