According to the patent law of the people's Republic of China and the rules for the implementation of the patent law of the people's Republic of China, the legal provisions related to patent licensing are as follows
Patent application
（1） Agreement license
Any entity or individual exploiting another person's patent shall conclude an exploitation license contract with the patentee and pay the patentee a royalty. The licensee has no right to allow any entity or individual other than those specified in the contract to exploit the patent. Agreement license is divided into: exclusive license; Exclusive permission; General license
（2） Special permission
Under any of the following circumstances, the administrative department for patent under the State Council may grant a compulsory license to exploit a patent for invention or utility model on the basis of the application of the entity or individual that meets the conditions for exploitation: the patentee fails to exploit or fully exploit his patent without justifiable reasons at the expiration of three years from the date of grant of the patent right and four years from the date of filing the patent application; The patentee's act of exercising the patent right is recognized as monopoly according to law, in order to eliminate or reduce the adverse impact of the act on competition. The patent administration department under the State Council may grant a compulsory license to exploit a patent for invention or utility model in the event of a state of emergency or extraordinary circumstances, or for the purpose of public interest.

Where the patentee declares in writing to the administrative department for patent under the State Council that he is willing to license any entity or individual to exploit his patent, and specifies the payment method and standard of the license fee, the administrative department for patent under the State Council shall make an announcement and implement an open license. Where a patent for utility model or design is declared to be open for license, an evaluation report on the patent right shall be provided. Where the patentee withdraws the opening license declaration, it shall do so in writing and shall be announced by the administrative department for patent under the State Council. If the declaration of opening license is withdrawn by public announcement, the validity of the opening license previously given shall not be affected. Any entity or individual who is willing to exploit the patent under an open license shall notify the patentee in writing and pay the license fee according to the announced payment method and standard of the license fee, and then obtain the license for exploitation of the patent. During the period of open license, the patentee shall not grant an exclusive or exclusive license for the patent.     For the purpose of public health, the administrative department for patent under the State Council may grant a compulsory license to manufacture and export the patented drugs to countries or regions that comply with the provisions of the relevant international treaties to which the people's Republic of China is a party.

Where an invention or utility model for which a patent right has been granted has significant technological progress of economic significance compared with an invention or utility model for which a patent right has been granted before, and its implementation depends on the implementation of the previous invention or utility model, the administrative department for patent under the State Council may, on the application of the latter patentee, grant a compulsory license to exploit the previous invention or utility model. Where a compulsory license for exploitation is granted in accordance with the preceding provisions, the administrative department for patent under the State Council may also grant a compulsory license for exploitation of the later invention or utility model upon the application of the previous patentee.
The decision made by the administrative department for patent under the State Council to grant a compulsory license for exploitation shall be promptly notified to the patentee, registered and announced. The decision to grant a compulsory license for implementation shall specify the scope and time of implementation according to the reasons for the compulsory license. When the reason for compulsory license is eliminated and no longer occurs, the administrative department for patent under the State Council shall, at the request of the patentee, make a decision to terminate the compulsory license after examination.

The unit or individual that has obtained the compulsory license for implementation does not enjoy the exclusive right of implementation and has no right to allow others to implement it. The entity or individual that has obtained the compulsory license for exploitation shall pay the patentee a reasonable royalty, or handle the issue of royalty in accordance with the provisions of the relevant international treaties to which the people's Republic of China is a party. If the royalty is paid, the amount shall be negotiated by both parties; If the two parties fail to reach an agreement, the administrative department for patent under the State Council shall make a ruling.

If the patenor refuses to accept the decision of the patent administration department under the State Council regarding the enforcement of the compulsory license, the patenor and the entity or individual that has obtained the compulsory license shall refuse to accept the ruling of the patent administration department under the State Council regarding the fees for the enforcement of the compulsory license, and may bring a suit in the people's court within three months from the date of receipt of the notification.