REPUBLIC OF LITHUANIA                                    
                           PATENT LAW                                           
                                                                                
                                                                                
                                                                                
     This  Law   shall  legitimize   inventions  as   objects  of               
industrial property,  regulate the rights and duties of legal and               
natural persons  with  respect    to  inventions,  provide  legal               
protection thereof.                                                             
                                                                                
                                                                                
                            CHAPTER I                                           
                                                                                
                    PROTECTION OF INVENTIONS                                    
                                                                                
                                                                                
     Article 1. Form of Protection of Inventions                                
                                                                                
     The form  of protection  of inventions  shall  be  a  patent               
granted by   the State Patent Bureau in the procedure established               
by this Law.                                                                    
                                                                                
     Article 2. Patentable Inventions                                           
                                                                                
     Inventions shall  be patentable  if they are new, involve an               
inventive  step and are industrially applicable.                                
     The following shall not be regarded as inventions:                         
     1)  discoveries,   scientific  theories   and   mathematical               
methods;                                                                        
     2) design of products;                                                     
     3) schemes,  rules and  methods of  games, intellectual  and               
economic  activities, as well as programmes for computers; and                  
     4) presentations of information.                                           
     Patents shall not be granted for the methods of treatment of               
people  and animals, diagnostics and prevention of diseases (with               
the exception   of  equipment and  materials  utilized  for  such               
methods), varieties  of  plants and animals as well as biological               
(except microbiological)   methods  of their  production and also               
for the  inventions which  are   deemed to  be contrary to public               
interest, principles of humanity and  morality.                                 
     Where the object of invention is a method, patent protection               
shall   also be  granted with  respect to  a product made by such               
method.                                                                         
                                                                                
     Article 3. Novelty of an Invention                                         
                                                                                
     An invention  shall be  considered new  if it  does not form               
part of the  state of the art.                                                  
                                                                                
     The state  of the  art shall  consist of  everything  which,               
before the   filing  date of patent application or where priority               
is claimed,  before  the priority date, has been published or was               
in public use in the  Republic of Lithuania or abroad.                          
                                                                                
     An invention shall not be considered new if although unknown               
from   the  state  of  the  art  it  had  been  described  in  an               
application for  patent   of  a  different  applicant  having  an               
earlier filing  date and  published   in the Official Bulletin of               
the State  Patent Bureau  later or  on the   same  date, that the               
state of the art had been established.                                          
                                                                                
     Article 4. Inventive Step                                                  
                                                                                
     An invention  shall be  considered to  involve an  inventive               
step, if   it  is not  obvious to  a person skilled in the art to               
which it pertains.                                                              
                                                                                
     Article 5. Industrial Applicability                                        
                                                                                
     An invention  shall be considered industrially applicable if               
it can    be  made  or  used  in  industry,  agriculture,  health               
protection and other  spheres.                                                  
                                                                                
     Article 6. Grace Period                                                    
                                                                                
     Disclosure of information shall not effect the patentability               
of an  invention if the information was disclosed within 6 months               
preceding   the filing date of a patent application and where the               
disclosure of  information has been made:                                       
                                                                                
     1) by  the inventor himself or by his successor in title who               
before   the filing  date of the patent application had the right               
to the patent;                                                                  
                                                                                
     2) by  a person  having an  interest in making an abuse with               
respect    to  inventor  or  his  successor  in  title  to  their               
disadvantage; and                                                               
                                                                                
     3) where an inventor or his successor in title displayed his               
invention   at an official or officially recognized exhibition in               
accordance with   the  Convention  on  International  Exhibitions               
signed at Paris on 22  November 1928.                                           
                                                                                
     An inventor  or his  successor in  title willing  to benefit               
from the   grace  period provided  for in  paragraph  1  of  this               
Article, shall  have  the burden of proving that he has the right               
to the grace period.                                                            
                                                                                
     Article 7. Right to a Patent                                               
                                                                                
     The right  to a  patent shall  belong to the inventor or his               
successor   in title.  Joint inventors  shall, unless  they agree               
otherwise have  equal rights to the patent.                                     
                                                                                
     Where  several   inventors  have  made  the  same  invention               
independently   of each other, the right to a patent shall belong               
to the  inventor   whose application has the earliest filing date               
with the  State Patent   Bureau  or who has the earliest priority               
right to  this invention  as   long as  his  application  is  not               
withdrawn or deemed withdrawn.                                                  
                                                                                
     Article 8. Service Inventions                                              
                                                                                
     The right  to the  patent  for  the  invention  made  by  an               
employee during   the  execution of a commission or an employment               
contract shall belong  to the employer if this is provided for in               
the contract made by an  employer and employee.                                 
                                                                                
     The  employer  is  obligated  to  pay  to  the  employee  an               
equitable remuneration,   taking  into account the economic value               
of the  invention and  any benefit   derived by the employer from               
the utilization of the invention.                                               
                                                                                
     Relations  between  the  employer  and  employee  concerning               
service inventions  shall be established by a separate law.                     
                                                                                
     Article 9. Mention of the Inventor                                         
                                                                                
     A patent  application and patent must contain mention of the               
name of  the inventor or inventors.                                             
                                                                                
                                                                                
     Any publication  of the  State Patent  Bureau  of  a  patent               
application   or patent, must mention the name of the inventor or               
inventors.                                                                      
                                                                                
     An inventor  shall have the right to request that his or her               
name should  not be mentioned. Therefore, he shall have to file a               
declaration with   the  State Patent  Bureau.  The  State  Patent               
Bureau shall have to proceed  accordingly.                                      
                                                                                
                           CHAPTER II                                           
                                                                                
                          PATENT GRANT                                          
                                                                                
                                                                                
     Article 10. Filing a Patent Application                                    
                                                                                
     A person  wishing to  obtain a patent for an invention shall               
file a   patent  application with  the State  Patent  Bureau.  An               
application may   be filed by several legal or natural persons or               
by both natural and  legal persons.                                             
     An application  may be filed on behalf of an inventor by his               
representative.   Foreign legal  and natural  persons shall  file               
applications with  the   State Patent  Bureau  through  a  patent               
attorney of the Republic of Lithuania.                                          
                                                                                
     Article 11. A Patent Application                                           
                                                                                
     A patent application shall contain:                                        
     1) a request for the grant of a patent;                                    
     2) a description of the invention;                                         
     3) one or more claims;                                                     
     4) drawings  if  necessary  for  the  understanding  of  the               
essence of the  invention;                                                      
     5) an abstract;                                                            
     6) a document confirming payment of the fee;                               
     7)  a  document  confirming  the  right  to  file  a  patent               
application (provided   it  is filed not by inventor himself) and               
the declaration regarding  inventorship of the invention.                       
     A request to grant a patent shall be filed in the Lithuanian               
language.   Other documents  shall be  filed in Lithuanian or any               
other language   designated  by the  State Patent  Bureau. In the               
event that  the documents   comprising  a patent  application are               
filed in  another language,  translation  thereof into Lithuanian               
must be  supplied. Translation  of documents  comprising a patent               
application must  be furnished  by an  applicant   to  the  State               
Patent Bureau  within 3  months from the date of filing  a patent               
application.                                                                    
                                                                                
     Article 12. Date of Filing a Patent Application                            
                                                                                
     The filing date of a patent application shall be the date of               
receipt  by the State Patent Bureau of the following documents:                 
     a request to grant a patent;                                               
     a description of the invention together with claims;                       
     any drawings  if necessary  for  the  understanding  of  the               
essence of  the invention;                                                      
     a document confirming payment of the fee.                                  
     Where an  applicant fails  to supply  all the  documents  as               
stated in   paragraph  1 of  this Article, the patent application               
shall be treated  as if not have been filed.                                    
                                                                                
     Article 13. Disclosure                                                     
                                                                                
     A specification must disclose the invention in such full and               
clear   terms as to enable any person skilled in the art to which               
it pertains  to use the invention.                                              
     Where  a   patent  application   refers  to  a  biologically               
reproducible  material     which   cannot  be  disclosed  in  the               
application in such a way as to enable  any person skilled in the               
art to use it, and such material is not  available to the public,               
it shall  be  deposited  for  safe-keeping  with    a  depository               
institution. The  patent application filed with the State  Patent               
Bureau shall  be accompanied  by a  document about the deposition               
of such biological material.                                                    
     A specification contained in the patent application shall be               
presented  as prescribed by the State Patent Bureau.                            
                                                                                
     Article 14. The Claims                                                     
                                                                                
     The patent application shall contain one or more claims. All               
claims   above 10  shall be  subject to  payment of an additional               
fee.                                                                            
     The claims shall define the scope of legal protection.                     
     All claims shall be clear and concise.                                     
     The claims  shall be  presented as  prescribed by  the State               
Patent Bureau.                                                                  
                                                                                
     Article 15. Abstract                                                       
                                                                                
     The abstract shall merely serve for the purpose of technical               
information on the invention and shall be presented as prescribed               
by the  State Patent Bureau. The abstract shall not be taken into               
account when establishing  the scope of patent protection.                      
                                                                                
     Article 16. Unity of Invention                                             
                                                                                
     A patent  application shall  be filed so as to relate to one               
invention   only or to a group of inventions so linked as to form               
a single general  inventive concept.                                            
     Failure  to   comply  with  the  requirements  of  unity  of               
invention shall  not be a ground for invalidation of a patent.                  
                                                                                
     Article 17. Division of Application                                        
                                                                                
     An applicant  who does  not observe  the requirements of the               
unity of   invention  shall be  obligated to  divide  his  patent               
application  into     two   or  more   applications   (divisional               
applications). An  applicant may   divide  his patent application               
into two or more applications on his  own initiative.                           
     In each  separate patent  application  the  essence  of  the               
invention must   not  be disclosed wider than it was disclosed in               
the initial patent  application.                                                
     The  filing   date  of  the  initial  application  shall  be               
established for  each separate patent application or, if priority               
is claimed, the priority  date of the initial application.                      
     Priority documents  and any  required  translations  thereof               
that are   submitted to the State Patent Bureau in respect of the               
initial patent   application  shall be  considered as having been               
submitted in respect  of all divisional applications.                           
                                                                                
     Article 18. Right of Priority                                              
                                                                                
     When filing  a patent application the applicant may submit a               
declaration  claiming the priority, pursuant the Paris Convention               
for the  Protection   of Industrial Property, on the basis of one               
or several  national or  international applications earlier filed               
in foreign countries, specifying  the filing date and the country               
of the said application or applications.                                        
     The State  Patent Bureau  may  request  from  the  applicant               
claiming priority   within  3 months  from the filing date of the               
application to  furnish   a copy  or copies  of previously  filed               
                                                                                
applications and  a translation    thereof  into  the  Lithuanian               
language.                                                                       
     Upon establishing  that the  requirements of  paragraph 2 of               
this Article   are  not observed,  the State  Patent  Bureau  may               
request the  applicant   to fulfil the requirements. Upon failure               
to  fulfil  the  requirements,    the  declaration  claiming  the               
priority shall be regarded as not have  been filed.                             
                                                                                
     Article 19. Examination                                                    
                                                                                
     The State  Patent Bureau  shall make  an  examination  of  a               
patent  application     and  establish  whether  the  application               
complies with  the requirements  provided for in paragraphs 2 and               
3 of Article 2, in Article 11, paragraphs  2 and 3 of Article 13,               
as well as in Articles 14 and 18.                                               
     After the  State Patent  Bureau finds  that the  application               
does not  meet the requirements as provided for in paragraph 1 of               
this Article,   it  shall  invite  the  applicant  to  meet  such               
requirements. If  the applicant  fails to do so, the State Patent               
Bureau shall adopt a resolution to  refuse the grant of a patent.               
                                                                                
     Article 20. Amendment or Correction of Application.                        
               Withdrawal  of Application                                       
                                                                                
     The applicant  shall have  the right to correct or amend the               
patent   application during  its pendency  in  the  State  Patent               
Bureau.                                                                         
     No amendment  or correction of the patent application may go               
beyond  what has been disclosed in the application as filed.                    
     The applicant  shall have  the right  to withdraw  a  patent               
application   at any time during its pendency in the State Patent               
Bureau.                                                                         
                                                                                
     Article 21. Publication of Patent Application                              
                                                                                
     The State Patent Bureau shall publish the patent application               
as filed  by the applicant within 18 months from its filing date,               
or if  priority  is claimed, from its priority date. In the event               
that the applicant  files a written request with the State Patent               
Bureau to  have his  patent   application published  earlier, the               
State Patent  Bureau proceeds  accordingly,   but no earlier than               
six months after the filing date of the application.                            
     A patent  application  shall  not  be  published  if  it  is               
withdrawn within  17 months from its filing or priority date.                   
     Provisional  legal   protection  shall   be  provided  to  a               
published patent   application  from the  date of its publication               
until the date of patent  grant.                                                
     If the  published patent  application is  later withdrawn or               
disputed   by another  person, it  shall be  considered that  the               
application has   not  been provided  with the  provisional legal               
protection provided for  in paragraph 3 of this Article.                        
     If an  invention is  kept secret, the inventor shall be paid               
compensation   according to  the agreement made between the state               
secret protection  institution and the inventor of the invention.               
                                                                                
     Article 22. Patent Grant                                                   
                                                                                
     If the  patent application complies with all requirements of               
the examination,   the  State patent  Bureau, on  payment of  the               
prescribed fee  by the  applicant,   shall within a month grant a               
patent.                                                                         
     Upon the decision to grant a patent, the State Patent Bureau               
shall   publish notification  of the patent grant in its Official               
Bulletin.                                                                       
     The form of a patent document and the number of data entered               
shall  be established by the State Patent Bureau.                               
     A patent  shall be  granted in  one copy  only. In the event               
that there   are several applicants, unless otherwise agreed, the               
patent shall   be  granted in  the name  of the  applicant who is               
stated first in the  request.                                                   
                                                                                
     Article 23. Register of Patents                                            
                                                                                
     The State  Patent Bureau  shall keep the Register of Patents               
of   the Republic  of Lithuania. On the register patents shall be               
assigned  a serial number in the order of their grant.                          
     The data  of the patent, as well as the data relating to its               
corrections   and other  data pertaining to the patent grant, use               
and protection   shall  be entered  in the Register of Patents of               
the Republic of Lithuania.                                                      
     An extract  of any  entry in  the Register of Patents of the               
Republic   of Lithuania  shall be  furnished by  the State Patent               
Bureau to  any   person upon  his  request  and  payment  of  the               
prescribed fee.  The extract  from the Register shall be regarded               
as an official document.                                                        
                                                                                
     Article 24. Inspection of Patent Applications Files                        
                                                                                
     After  a   patent  application   is  published,  any  person               
interested may   inspect  it. To  inspect  a  patent  application               
before it  is published   shall  be possible  only  upon  written               
consent of the applicant.                                                       
     Where a  patent application has been withdrawn in accordance               
with  paragraph    3  of  Article  20  before  it  is  published,               
inspection of  the application    shall  be  possible  only  upon               
written consent of the person who has  withdrawn the application.               
                                                                                
     Article 25. Settlement of Disputes                                         
                                                                                
     Disputes  arising   before  the  patent  grant  between  the               
applicant and   the  examiner of  the State  Patent  Bureau  with               
respect to  the filing  or priority date of a patent application,               
conclusions of  examination   and refusal to grant a patent shall               
be settled  by the  Board of Appeals  of the State Patent Bureau.               
The applicant  or his  representative shall   have  the right  to               
participate in the hearings of the Board of Appeals.                            
                                                                                
                                                                                
                           CHAPTER III                                          
                                                                                
                       EFFECTS OF A PATENT                                      
                                                                                
     Article 26. Rights of the Owner of a Patent                                
                                                                                
     Where a  patent concerns  a  product  (equipment,  material,               
etc.) the   owner  of the  patent shall have the right to prevent               
third parties   from  performing, without  his authorization, the               
following acts:                                                                 
     1) the manufacturing of a product incorporating the patented               
invention;                                                                      
     2) the offering, importing, or providing as well as stocking               
for the  market a product incorporating the patented invention.                 
     Where the patent concerns a process, the owner of the patent               
shall   have the  right to prevent third parties from performing,               
without his  authorization, the following acts:                                 
     1) the using of a process which is the subject matter of the               
patent;                                                                         
     2) to  perform acts  referred to in item 2 of paragraph 1 of               
this Article   with  respect to  any product directly obtained by               
such process even  if such product is non-patentable.                           
                                                                                
                                                                                
     The owner of the patent shall have no right to prevent third               
parties   from performing acts referred to in paragraphs 1 and 2,               
provided that:                                                                  
     1) the act is done privately and for non-commercial purposes               
and it   does  not significantly prejudice the economic interests               
of the owner  of the patent;                                                    
     2) the  act is  done for purely experimental purposes or for               
scientific  research;                                                           
     3) the  act consists  of preparing  medicines for individual               
cases in   a  pharmacy upon the prescription of a physician or if               
it is indicated  how to use the medicines so prepared.                          
     The owner  of the patent shall have the right to prevent all               
third   parties from  supplying or  offering to  supply essential               
elements of   the  patented invention with the exception of those               
which are widely  known in the economic activities, if the supply               
and offering to supply  them is necessary for performing the acts               
provided for in paragraphs  1 and 2 of this Article.                            
     Rights to the patent application and the patent itself shall               
be inheritable. The state shall not inherit these rights.                       
                                                                                
     Article 27. Term of Patents and Maintenance Fees                           
                                                                                
     The term  of a  patent shall be 20 years as from the date of               
filing  the application.                                                        
     The maintenance  of a patent shall be subject to the payment               
of an  annual fee.                                                              
     The first  annual fee  shall be  due in respect of the third               
year of  the validity of a patent.                                              
     The annual  fee shall  be paid within two last months of the               
current  year of the validity of a patent.                                      
     The annual  fee increased  by 50%  may still be validly paid               
within 6   months  from the due date prescribed in paragraph 4 of               
this Article.                                                                   
                                                                                
     Article 28. Scope of Legal Protection and Interpretation  of               
               Claims                                                           
                                                                                
     The scope of legal protection conferred by a patent shall be               
determined   by the  claims. The  description and drawings may be               
used to interpret  the claims.                                                  
     Claims shall  be  considered  to  cover  not  only  all  the               
elements as expressed  in the claims but also their equivalents.                
     An element  shall be  considered as  being equivalent  to an               
element as  expressed in a claim if:                                            
     it performs substantially the same function in substantially               
the same   way  and produces substantially the same result as the               
element expressed  in the claim;                                                
     it is  obvious to  a person skilled in the art that the same               
result   as that achieved by means of the element as expressed in               
the claim,  can be achieved by means of the equivalent element.                 
     The State  Patent Bureau  shall take  into consideration any               
statement   of the  applicant or the owner of the patent to limit               
the scope  of  the claims filed before the patent grant or within               
the patent validity  term.                                                      
     If  the   patent  description   contains  examples   of  the               
embodiment of  the   invention or  examples of  the functions  or               
results of the invention,  the claims shall not be interpreted as               
limited to such examples.                                                       
                                                                                
     Article 29. Right of Prior Use                                             
                                                                                
     Natural and  legal persons  who in  good faith were using or               
were making   effective  or serious  preparations  for  such  use               
before the  filing  date  or,  where  priority  is  claimed,  the               
priority date  of a  patent application,  shall have the right to               
continue such  use or  to use the invention  as envisaged in such               
preparations without  taking into  consideration  the will of the               
owner of the patent.                                                            
     The right  of the prior use may only be transferred together               
with the   enterprise  or its activities or with that part of the               
enterprise or  its activities in which the use of an invention or               
preparations for  such use have been made.                                      
                                                                                
     Article 30. Rights of the Owner of the Patent with Respect                 
               to Foreign Means of Transport                                    
                                                                                
     The following  shall not  be considered the violation of the               
rights  of the owner of the patent:                                             
     1) the  use of  the means,  which are  the subjects  of  the               
patent, on   any  foreign  vessel,  temporarily  or  accidentally               
entering the  waters   of the Republic of Lithuania provided that               
such means  shall be  used   exclusively for  the  needs  of  the               
vessel;                                                                         
     2) the use of the means which are the subjects of the patent               
in the   construction  of foreign  air or  land carriers  or  the               
exploitation  of   these  means,   as  well   as  their   use  in               
supplementary  constructions   thereof,     when  such  means  of               
transport temporarily  or accidentally  enter the    Republic  of               
Lithuania.                                                                      
                                                                                
                                                                                
                           CHAPTER IV                                           
                       CHANGE IN OWNERSHIP                                      
                                                                                
                                                                                
     Article 31. Change in Ownership of Patent Application or                   
               Patent                                                           
                                                                                
     Any contract  assigning a  patent application  or  a  patent               
shall be made  in writing and attested by the notary.                           
     Any change  in the  ownership of  a patent  application or a               
patent shall   be  recorded on  payment of the fee with the State               
Patent Bureau.  The   right to  a patent  or a patent application               
shall be  obtained as  of  from the date of the registration with               
the State  Patent Bureau.  The  State Patent Bureau shall publish               
in its  Official Bulletin  information   on  the  change  of  the               
ownership.                                                                      
                                                                                
     Article 32. Judicial Assignment of a Patent Application  or                
               a Patent                                                         
                                                                                
     The person  concerned may  request the  court to  order  the               
assignment  of the patent application or the patent to him if the               
essential  elements    of  the  invention  claimed  in  a  patent               
application or  patent are  created   by  him,  but  not  by  the               
applicant of a patent application or by the  patent owner.                      
                                                                                
     Article 33. Change of Joint Ownership of a Patent                          
               Application  or a Patent                                         
                                                                                
     A patent  application or  a patent  may  jointly  belong  to               
several applicants  or several joint owners of the patent.                      
     Each of  the joint  applicants may independently without the               
consent   of the  others assign  by succession  his share  in the               
application, but   the joint applicants may only jointly withdraw               
the patent application  or conclude licence agreements with third               
parties.                                                                        
     Each of joint owners of the patent may independently without               
the consent   of  the others assign or transfer by succession his               
share  in   the  patent    or  institute  court  proceedings  for               
infringement of the patent.                                                     
                                                                                
     The joint  owners may  only jointly  surrender the patent or               
conclude  licence agreements with third parties.                                
     The regulations  provided for  in paragraphs 2 and 3 of this               
Article   shall be applicable only in the absence of an agreement               
to the  contrary   between the  joint applicants or owners of the               
patent.                                                                         
                                                                                
                                                                                
                            CHAPTER V                                           
               LICENCE AGREEMENT. LICENCE OF RIGHT                              
                                                                                
                                                                                
     Article 34. Licence Agreement                                              
                                                                                
     Licence agreement  means any agreement by which a party (the               
licensor)   allows the  other party (the licensee) to perform any               
of the acts referred  to in Article 26.                                         
     A licence  agreement must  be made  in writing. Oral licence               
agreement  shall not be valid.                                                  
     On payment of the prescribed fee the licence agreement shall               
be recorded   in  the Register  of Patents  of  the  Republic  of               
Lithuania and  shall   be enforced  as of  from the  date of such               
recording.                                                                      
     A separate  law shall  establish the procedure of making and               
amending  licence agreements.                                                   
                                                                                
     Article 35. Rights of Licensee                                             
                                                                                
     The rights  given by  the licensor  to  the  licensee  shall               
extend to the  performance of all the acts referred to in Article               
26, unless  otherwise  provided in the licence agreement, without               
limitations throughout   the  entire territory of the Republic of               
Lithuania and through any  application of the said invention.                   
     In the  absence of  any provisions  to the  contrary in  the               
licence agreement,   the licensee may not allow a third person to               
perform any of the acts  referred to in Article 26.                             
                                                                                
     Article 36. Rights of Licensor                                             
                                                                                
     In the  absence of  any provisions  to the  contrary in  the               
licence agreement,   the  licensor may  allow a  third person  to               
perform any of the acts referred to in Article 26 and may perform               
them himself.                                                                   
     If the  licence  agreement  provides  that  the  licence  is               
exclusive the   licensor  may neither  allow any  third party  to               
perform, nor perform  himself the acts referred to in Article 26.               
                                                                                
     Article 37. Licence of Right                                               
                                                                                
     The owner  of a  patent may  file a statement with the State               
Patent Bureau  that he is prepared to allow any person to use the               
invention as  a  licensee in return for appropriate compensation.               
In this case the  annual fees shall be reduced by 50%.                          
     The  State   Patent  Bureau  shall  refuse  to  accept  such               
statement as  long   as an exclusive licence granted by the owner               
of the patent for the  same invention is recorded in the Register               
of Patents of the Republic  of Lithuania.                                       
     The owner  of the  patent may withdraw such statement at any               
time upon   written  notification to  this effect  to  the  State               
Patent Bureau,  provided  that no one has previously informed the               
State Patent  Bureau in  writing   of his  intention to  use  the               
invention.                                                                      
     Any person  willing to  make use of the licence of right may               
file a   statement  with the  State Patent  Bureau and  shall  be               
entitled to  use   the invention  as a  licensee. Any  licence so               
obtained shall be treated  as non-exclusive.                                    
     Upon the receipt of a statement of any person to make use of               
the licence   of  right, the  State Patent  Bureau shall  have no               
right to  record an   exclusive  licence  granted  for  the  same               
invention in  the  Register  of    Patents  of  the  Republic  of               
Lithuania, unless the said statement is  withdrawn.                             
                                                                                
                           CHAPTER VI                                           
                       COMPULSORY LICENCE                                       
                                                                                
     Article 38. Compulsory Licence                                             
                                                                                
     If after  the expiration  of a period of four years from the               
date of   filing the application or three years from the grant of               
the patent   (the  whichever is  later), there  is non-working or               
insufficient working  of the patented invention and those willing               
to work  it are  refused  a licence, on the request of any person               
who proves his ability to  work the patented invention, the court               
may grant  a non-exclusive  compulsory  licence. The grant of the               
compulsory licence  shall be subject to the  payment of equitable               
remuneration to  the owner  of the  patent the  amount   of which               
shall be fixed by the court.                                                    
     A compulsory  licence shall  not be  granted if the court is               
convinced  that circumstances exist which justify the non-working               
or insufficient working of the patented invention in the Republic               
of Lithuania.                                                                   
     Where a  compulsory licence  is  granted  and  the  patented               
invention is   still  not or  insufficiently worked, the court at               
the request  of persons  interested may prescribe a forfeiture of               
a patent.  A forfeiture  of  a patent shall be allowed only after               
the expiration  of a  period of  two years from the date on which               
the first compulsory licence was  granted.                                      
                                                                                
     Article 39. Exploitation of an Invention approved by the                   
               Government of the Republic of Lithuania                          
                                                                                
     Taking into consideration the state or public interests, the               
Government  of the Republic of Lithuania may adopt a decree, even               
without the   agreement  of the  owner of  a patent,  to allow an               
enterprise or  a person   to  use a patented invention subject to               
payment of  equitable remuneration   to  the owner of the patent.               
The owner  of the patent who finds the  amount of remuneration as               
fixed by  the Government  non-equitable shall   have the right to               
appeal to the court.                                                            
     Upon the  receipt of  the decree  of the  Government of  the               
Republic of  Lithuania approving the exploitation of an invention               
the State  Patent   Bureau shall  publish it in the next issue of               
its Official Bulletin.                                                          
                                                                                
                                                                                
                           CHAPTER VII                                          
        CONSIDERATION OF DISPUTES. ENFORCEMENT OF RIGHTS                        
                                                                                
     Article 40. Institutions for Consideration of Disputes                     
               Concerning the Legal Protection of Inventions                    
                                                                                
     Disputes regarding  the patenting  and the use of inventions               
shall be  dealt with by the following institutions:                             
     1) the  Board of  Appeals of  the State  Patent  Bureau,  in               
respect of all disputes relating to the patenting of an invention               
prior to the  patent grant;                                                     
     2) by  the Supreme Court of the Republic of Lithuania as the               
court  of first instance up to the entry into force of the Law of               
the Republic   of  Lithuania on  the  establishment  of  District               
Courts, Court  of Appeals   and the Supreme Court of the Republic               
of Lithuania  and Supplement   to  Article 15 of the Court Law of               
                                                                                
the Republic  of Lithuania;  after    that  date  -  the  Vilnius               
district court, in respect of disputes regarding:                               
     decisions of the Board of Appeals of the State Patent Bureau               
relating  to the refusal to grant a patent;                                     
     assignment  of  a  patent  application  or  a  patent  to  a               
different person;                                                               
     all matters relating to the invalidation of a granted patent               
in full  or in part;                                                            
     all matters  concerning infringement of a patent application               
for which  provisional protection is granted;                                   
     all matters relating to infringement of a patent;                          
     all matters relating to the declaration of non-infringement;               
     all matters relating to a compulsory licence.                              
                                                                                
     Article 41. Protection of Rights                                           
                                                                                
     The owner  of a patent or the applicant shall have the right               
to institute court proceedings against a person who has infringed               
or is infringing  the patent or published patent application, for               
which provisional   protection  was granted,  and to  require the               
termination of  infringing  acts, as well as compensation for the               
inflicted damage.  Any of  them   shall also  have the  right  to               
institute court proceedings against any  person who is performing               
acts which  make it  likely that  such infringement   will occur.               
Such proceedings  may not  be instituted  later than three  years               
from the establishment of the fact of infringement.                             
     Unless  the   licence  agreement   provides  otherwise,  any               
licensee may  request the owner of the patent to take measures to               
protect his  rights   obtained under  the licence  agreement. The               
licensee shall  specify the   legal  acts needed  to protect  his               
rights and the relief desired.                                                  
     Such licensee may, if he proves that the owner of the patent               
received  his request but failed to institute proceedings against               
the infringer   of  patent rights  within three  months from  the               
receipt of  request,  institute proceedings against the infringer               
in his  own name, after  notifying the owner of the patent of his               
intention. The  owner of the  patent shall have the right to join               
in the proceedings as a person  concerned.                                      
     Even before  the expiration  of the  three month period, the               
court may,   on the request of the licensee, grant an appropriate               
injunction to  prevent infringement of the rights of the owner of               
the patent,  if   the licensee  proves that  immediate action  is               
necessary to avoid substantial  damage.                                         
     If the subject-matter of a patent is a process for obtaining               
a product   and  the product produced by the defendant is new and               
there is  a reason   to  believe that  the product is produced by               
infringing the  patent,   but the  plaintiff  is  unable  through               
reasonable efforts  to determine   the process actually used, the               
defendant must  prove that  the product   does  not infringe  the               
patent.                                                                         
                                                                                
     Article 42. Declaration of Non-Infringement                                
                                                                                
     Any person concerned shall have the right to institute court               
proceedings  against the owner of the patent requesting the court               
to declare  that   the performance  of a  specific act  does  not               
constitute infringement  of the patent.                                         
     If the  person concerned  proves that  the acts performed by               
him do  not   constitute infringement  of the  patent, the  court               
shall pass the decision  of non-infringement.                                   
     The owner  of the  patent shall  notify any licensees of the               
proceedings.   In the absence of any provision to the contrary in               
the licence agreement  the licensees shall have the right to join               
the proceedings.                                                                
                                                                                
                          CHAPTER VIII                                          
           CHANGES IN PATENTS. SURRENDER. INVALIDATION                          
                                                                                
                                                                                
     Article 43. Changes in Patents                                             
                                                                                
     The owner  of the patent shall have the right to request the               
State   Patent Bureau  to make  changes in the patent in order to               
limit the  extent of the protection conferred by it.                            
     The owner  of the patent shall have the right to request the               
State   Patent Bureau  to make  changes in the patent in order to               
correct mistakes  and clerical errors.                                          
     The State Patent Bureau must comply with lawful requirements               
of the  owner of the patent.                                                    
     No changes  in the  patent shall  be permitted  which  would               
result in   the extension of the scope of the invention set forth               
in the patent  application.                                                     
     The State  Patent Bureau  shall publish  the changes  of the               
patent in  its Official Bulletin.                                               
                                                                                
     Article 44. Surrender                                                      
                                                                                
     The owner  of the patent may surrender the patent by written               
declaration   to the  State Patent  Bureau. The  surrender may be               
limited toone  or more claims of the patent.                                    
     The State  Patent  Bureau  shall  record  surrender  in  the               
Register of  Patents and publish it in the Official Bulletin.                   
     The surrender of the patent shall take effect as of from the               
date   of the  receipt of  the declaration  of the  owner of  the               
patent by the  State Patent Bureau.                                             
                                                                                
     Article 45. Invalidation                                                   
                                                                                
     On the  request of  any  persons  concerned  the  court  may               
invalidate a   patent,  in whole  or  in  part,  on  one  of  the               
following grounds:                                                              
     1) the  invention is  not patentable  within the  meaning of               
Articles  2-5 of this Law;                                                      
     2) the  patent does  not disclose  the invention in a manner               
sufficiently   clear and  complete for  it to be carried out by a               
person skilled in  the art;                                                     
     3) the  disclosure contained  in the patent goes beyond what               
has been  disclosed in the application as filed, or if the patent               
was granted   on a divisional application, which goes beyond what               
has been disclosed  in the initial application as filed;                        
     4) the  owner of  the patent  has no  right to it within the               
meaning of  paragraph 1 of Article 8 of this Law.                               
     If  the   patent  is   recognized  invalid   in  part,   the               
corresponding limitation   of the rights conferred by the patent,               
the reduction  of  the  number    of  claims,  and  corresponding               
amendments to description and drawings  shall be made.                          
                                                                                
     Article 46. Effects of Invalidation                                        
                                                                                
     To the  extent that  a patent is invalidated by the court in               
whole or   in  part it  shall be considered null and void as from               
the filing date  of the patent application.                                     
     When a  decision of  the court  to invalidate  a patent,  in               
whole or  in  part, becomes final, the court shall send it to the               
State Patent Bureau,  which shall record data on the invalidation               
in the  Register of  Patents   of the  Republic of  Lithuania and               
publish it in its Official Bulletin.                                            
                                                                                
                                                                                
                           CHAPTER IX                                           
                INTERNATIONAL PATENT APPLICATION                                
                                                                                
     Article 47. General Provisions                                             
                                                                                
     An international  patent application  shall  mean  a  patent               
application   filed under  the Patent  Cooperation Treaty done at               
Washington on 19  June 1970.                                                    
     In  this   Chapter  of   the  Law  when  speaking  about  an               
international patent  application references are made to articles               
of the  Patent Cooperation   Treaty and the Regulations under the               
Patent Cooperation Treaty.                                                      
     The provisions of the Patent Cooperation Treaty, of this Law               
and executive   acts  shall apply  in respect of an international               
patent application   for  which the State Patent Bureau acts as a               
receiving, designated  or elected patent office.                                
                                                                                
     Article 48. International Patent Application for which  the                
               State Patent Bureau Acts as a Designated or                      
               Elected Patent Office                                            
                                                                                
     Any international  patent application  for which  the  State               
Patent Bureau  is a designated or elected patent office and which               
has been  published   under Article  21 of the Patent Cooperation               
Treaty shall  enjoy provisional   protection under paragraph 3 of               
Article 21 of this Law.                                                         
     The provisional  protection shall  become effective from the               
date on  which a translation into Lithuanian of the claims of the               
invention   described in  the international patent application is               
published by  the State Patent Bureau in the Official Bulletin.                 
     If the  applicant of an international patent application for               
which   the State Patent Bureau is a designated or elected patent               
office wishes   to  obtain a  patent of the Republic of Lithuania               
under this  Law, he   must within the time limit applicable under               
Articles 22  or 39  of the   Patent  Cooperation Treaty furnish a               
translation  of   the  international    patent  application  into               
Lithuanian and pay the prescribed fee.                                          
                                                                                
     Article 49. International Patent Application Filed with  the               
               State Patent Bureau as a Receiving Patent Office                 
                                                                                
     An international  patent application  may be  filed with the               
State Patent   Bureau if the applicant is a resident or a citizen               
of the Republic  of Lithuania.                                                  
     A fee  for transmitting  an international patent application               
to the   International  Bureau of the World Intellectual Property               
Organization   and to the International Searching Authority shall               
be paid  as provided  for in item 14 of the Regulations under the               
Patent Cooperation Treaty.                                                      
     An international  patent application  must be  filed in  the               
language  established by the State Patent Bureau.                               
                                                                                
                                                                                
                            CHAPTER X                                           
                  EXTENSION OF EUROPEAN PATENTS                                 
                                                                                
     Article 50. General provisions                                             
                                                                                
     A  European   patent  application   and  a  European  patent               
extending to  the   Republic of Lithuania shall, according to the               
following provisions   of this Chapter, have the effect of and be               
subject to  the same  conditions  as a national application filed               
and a  national patent  granted  under  the  Patent  Law  of  the               
Republic of Lithuania.                                                          
     A European  patent application  means an  application for  a               
European  patent filed under the European Patent Convention, done               
at Munich   on  5 October  1973,  as  well  as  an  international               
application filed  under   the Patent Cooperation Treaty, done at               
Washington on  19 June 1970  for which the European Patent Office               
(hereinafter referred  to as  the   EPO) acts  as  designated  or               
elected office  and in  which the  Republic   of Lithuania  is  a               
designated country.                                                             
     An extended  European patent  means a  patent granted by the               
EPO  on  a  European  patent  application  in  respect  of  which               
extension to the Republic  of Lithuania has been requested.                     
     A national  patent application  means a  patent  application               
filed under   this  Law with  the  State  Patent  Bureau  of  the               
Republic of Lithuania.                                                          
     A national  patent means  a patent  granted  on  a  national               
patent application.                                                             
                                                                                
     Article 51. Request for Extension                                          
                                                                                
     A European  patent application and a European patent granted               
on  such  application  shall  be  extended  to  the  Republic  of               
Lithuania at  the   request of  the applicant.  The  request  for               
extension shall  be deemed   to be filed with any European patent               
application filed  on or  after   the date on which the Agreement               
implementing Article  3(3) of  the Cooperation  Agreement between               
the Government  of the  Republic of  Lithuania and   the European               
Patent Organization enters into force. Any request for  extension               
shall be  published  by  the  State  Patent  Bureau  as  soon  as               
possible after  it has been transmitted by the EPO but not before               
the  expiry of 18 months from the filing date or, if priority has               
been  claimed, the earliest priority date.                                      
     The request  for extension  may be withdrawn at any time. It               
shall be  deemed withdrawn where the prescribed extension fee has               
not been  paid    in  due  time  or  where  the  European  patent               
application has  been  finally    refused,  withdrawn  or  deemed               
withdrawn. The State Patent Bureau shall  publish this as soon as               
possible  if   the  request  for  extension  has    already  been               
published.                                                                      
                                                                                
     Article 52. Extension Fee                                                  
                                                                                
     The extension  fee under  paragraph 2 of Article 51 shall be               
paid to  the EPO within the applicable time-limits provided under               
the European Patent Convention for the payment of the designation               
fee.                                                                            
     The extension  fee may  still be  validly  paid  within  the               
period of  grace  specified in Rule 85a(2) of the European Patent               
Convention, provided  that a surcharge of 50% is paid within this               
period.                                                                         
     For the  payment of extension fees the Rules of the European               
Patent   Convention relating  to the  payment of fees shall apply               
mutatis mutandis.   Extension  fees validly  paid  shall  not  be               
refunded.                                                                       
                                                                                
     Article 53. Effects of European Patent Applications                        
                                                                                
     A European  patent application  which has  been  accorded  a               
filing date  shall in any case be equivalent to a national patent               
application filed   according  to all the requirements, where the               
priority of the European  patent application is being recognized,               
whatever its outcome may be.                                                    
     A published  European patent  application shall  be provided               
with the   same  provisional  protection  as  a  national  patent               
application according   to paragraph 3 of Article 21 of this Law.               
The provisional  protection   shall be  provided from the date on               
which a  translation of  the claims   of  the published  European               
patent  application  into  the  Lithuanian  language    has  been               
communicated by  the applicant  to the person using the invention               
in the Republic of Lithuania.                                                   
     The European  patent application shall be deemed not to have               
been provided  for the provisional protection ab initio, referred               
to in paragraph 2 of this Article where the request for extension               
has been later withdrawn  or is deemed withdrawn.                               
                                                                                
     Article 54. Effects of European Patents                                    
                                                                                
     An extended European patent shall, subject to paragraphs 2-6               
of this   Article,  confer from  the date  of publication  of the               
mention of  its   grant by  the EPO  the same  rights as would be               
conferred by a national  patent under Article 26 of this Law.                   
     Within 3  months from  the date  on which the mention of the               
grant of   the  European patent  has been published, the owner of               
the  patent   shall    furnish  to  the  State  Patent  Bureau  a               
translation of  the  claims  of  the  European  patent  into  the               
Lithuanian  language   and  shall  pay  the  prescribed  fee  for               
publication.                                                                    
     If, as  a result  of an  opposition filed  with the EPO, the               
claims of   the patent have been amended, the owner of the patent               
shall, within   three  months from  the date on which the amended               
claims of the patent  were published, furnish to the State Patent               
Bureau a translation of  the amended claims of the invention into               
the Lithuanian  language and   pay  the prescribed  fee  for  the               
publication.                                                                    
     The State  Patent Bureau  shall publish  as soon as possible               
any exact   translations filed according to paragraphs 2 and 3 of               
this Article.                                                                   
     If the  translation specified  in paragraphs 2 and 3 of this               
Article   is not  filed in  due time or the prescribed fee is not               
paid in due  time, the European patent shall be deemed to be void               
ab initio.                                                                      
     An  extended   European  patent   and  the  European  patent               
application on  which it is based shall be deemed not to have had               
ab initio  the effects   specified in paragraph 1 of this Article               
and paragraph  2 of Article  53 to the extent that the patent has               
been revoked in opposition proceedings  before the EPO.                         
                                                                                
     Article 55. Authenticity of Texts of European Patent                       
               Applications  or European Patents                                
                                                                                
     The text  of a  European patent  application or  a  European               
patent in   the  language of the proceedings before the EPO shall               
be considered  the authentic text in the Republic of Lithuania as               
well.                                                                           
     The translations specified in Articles 53 and 54 of this Law               
shall be regarded as authentic, except in revocation proceedings,               
where  they   confer  protection  which  is  narrower  than  that               
conferred by  it   in the  language of the proceedings before the               
European Patent Office.                                                         
     The applicant  or  the  owner  of  the  patent  may  file  a               
corrected translation   of  the claims  of  the  European  patent               
application or  European patent.  The corrected translation shall               
become effective  when it  is published    by  the  State  Patent               
Bureau. Any  person who,  in  good  faith,  uses  or    has  made               
effective  and  serious  preparations  for  using  an  invention,               
without  infringing   the  previous  translation  of  the  patent               
application   or patent  may, after  the corrected translation of               
the claims  takes   effect, continue  using the  invention in his               
business or for the needs  of his enterprise without payment.                   
                                                                                
     Article 56. Right of Earlier Date                                          
                                                                                
     A European  patent application  for which  the extension fee               
has been   paid  and an  extended European patent shall have with               
regard to  a national   patent  application and a national patent               
the same prior art effect  as a national patent application and a               
national patent under paragraph  2 of Article 3 of this Law.                    
                                                                                
     A national  patent application  and a  national patent shall               
have with   regard  to an extended European patent the same prior               
art effect  as   they have under paragraph 2 of Article 3 of this               
Law.                                                                            
                                                                                
     Article 57. Simultaneous Protection                                        
                                                                                
     Where an  extended European  patent and  a  national  patent               
having the  same filing date or, where priority has been claimed,               
the same  priority   date have been granted to the same person or               
his successor in title,  the national patent shall have no effect               
to the  extent that it covers  the same invention as the extended               
European patent  as from  the date   on  which the time limit for               
filing an  opposition to the European patent  has expired without               
an opposition having been filed or as from the  date on which the               
opposition  procedure   has  resulted   in   a   final   decision               
maintaining the European patent.                                                
                                                                                
     Article 58. Renewal Fees for Extended European Patents                     
                                                                                
     Renewal fees  for an  extended European patent shall be paid               
to the   State  Patent Bureau.  It shall  be  paid  starting  the               
following year   after  the mention  of the grant of the European               
patent was published.                                                           
                                                                                
     Article 59. Applicability of the European Patent Convention                
                                                                                
     The provisions  of the  European Patent  Convention and  its               
Implementing   Regulations shall  not apply  in the  Republic  of               
Lithuania unless otherwise  provided in this Law.                               
                                                                                
                                                                                
                           CHAPTER XI                                           
                    INTERNATIONAL AGREEMENTS                                    
                                                                                
                                                                                
                                                                                
     Article 60. International Agreements; Rights of Foreign                    
               Legal and Natural Persons                                        
                                                                                
     Where international  agreements to  which  the  Republic  of               
Lithuania   is a  party establish rights which, for the applicant               
or the  owner of  the patent,  are more  advantageous that  those               
provided for in this  Law and other standard acts, the provisions               
of such international  agreements shall apply.                                  
     Protection of  inventions in the Republic of Lithuania shall               
be granted   on  a patent  application filed  abroad if  it is so               
provided for  in an  agreement or treaty to which the Republic of               
Lithuania is  a party.  Such  patent  application  and  a  patent               
granted on  it shall  have in the  Republic of Lithuania the same               
effects as  a national  patent application   filed with the State               
Patent Bureau  and a patent granted on it, as  prescribed by this               
Law.                                                                            
     Foreign legal  and natural  persons shall  enjoy all  rights               
provided   for in this Law and other standard acts regulating the               
protection  of the rights of the patent owner.                                  
                                                                                
                                                                                
                                                                                
                           CHAPTER XII                                          
                        FINAL PROVISIONS                                        
                                                                                
                                                                                
     Article 61. Amendments of the Civil Code of the Republic  of               
               Lithuania                                                        
                                                                                
     To declare  Chapter  5  (Articles  557-559)  and  Chapter  6               
(Articles 560-566)    of  the  Civil  Code  of  the  Republic  of               
Lithuania null and void.                                                        
                                                                                
     Article 62. Entry into Force of this Law                                   
                                                                                
     The Patent  Law of the Republic of Lithuania, except Chapter               
9 "International   Patent  Application" and Chapter 10 "Extension               
of European  Patents",   shall become  effective as of 1 February               
1994.                                                                           
     Chapter 9  shall become  effective upon  the date  when  the               
accession  of the Republic of Lithuania to the Patent Cooperation               
Treaty, done  at Washington on 19 June 1970 takes effect.                       
     Chapter 10  shall become  effective on  the  date  when  the               
bilateral agreement   between  the Government  of the Republic of               
Lithuania and the European  Patent Organization on cooperation in               
the field of patents becomes  effective.                                        
                                                                                
                                                                                
     I promulgate  this Law adopted by the Seimas of the Republic               
of  Lithuania.                                                                  
                                                                                
                                                                                
                                                                                
ALGIRDAS BRAZAUSKAS                                                             
                                                                                
President                                                                       
of the Republic                                                                 
                                                                                
Vilnius                                                                         
18 January 1994                                                                 
No.I-372                                                                        
                                                                                
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