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At the end of Section twenty-nine of the principal Act the following words shall be inserted:—
And the terms of any agreement or licence concluded between the inventor or patentee and any person other than a Government Department, shall be inoperative so far as concerns the making use or exercise of the invention for the service of the Crown:
Provided further, that where an invention which is the subject of any patent has, before the date of the patent, been duly recorded in a document by, or tried by on behalf of, any Government Department, such invention not haying been communicated directly or indirectly by the applicant for the patent or the patentee, any Government Department, or such of their agents, contractors, or others, as may be authorised in writing by them, may make use and exercise the invention so recorded or tried, far the service of the Crown, free of any royalty or other payment to the patentee, notwithstanding the existence of the patent. If in the opinion of the Department the disclosure to the applicant or the patentee, as the case may be, of the document recording the invention, or the evidence of the trial thereof, if required, would be detrimental to the public interest, it may be made confidentially to counsel on behalf of the applicant or patentee, or to any independent expert mutually agreed upon. In ease of any dispute as to the existence or scope of any
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record as aforesaid, or as to the use of an invention, or the terms of its use, the matter shall be referred to a judge of the High Court for decision, who shall have power to refer the whole matter or any question or issue of fact arising thereon to be tried before a special or official referee or an arbitrator upon such terms as he may direct.
The right to use an invention for the services of the Crown under the provisions of this Section, shall include, and shall be deemed always to have included, the power to sell any articles made in pursuance of such right which are no longer required for the services of the Crown.
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Lords Amendment: Leave out Clause 8, and insert instead thereof Clause A:
A. For Section 29 of the principal Act the following Section shall be substituted:—
29.—(l) A patent shall have to all intents the like effect as against His Majesty the King as it, has against a subject:
Provided that any Government Department. may, by themselves or by such of their agents, contractors, or others as may be authorised in writing by them at any time after the application, make, use or exercise the invention for the services of the Crown on such terms as may, either before or after the use thereof, be agreed on, with the approval of the Treasury, between the Department and the patentee, or, in default of agreement, as may be settled in the manner hereinafter provided. And the terms of any agreement or licence concluded between the in ventor or patentee and any person other than a Government Department, shall be inoperative so far as concerns the making, use or exercise of the invention for the service of the Crown:
Provided further, that where an invention which is the subject of any patent has, before the date of the patent, been duly recorded in a document by, or tried by or on behalf of any Government Department, such invention not has lug been communicated directly or indirectly by the applicant for the patent or the patentee, any Government Department, or such of their agents, contractors, or others, as may be authorised in writing by them, may make, use and exercise the invention so recorded or tried, for the service of the Crown, free of any royalty or other payment to the patentee notwith Landing the existence of the patent. If in the opinion of the Department the disclosure to the applicant or the patentee, as the case may be, of the document recording the invention, or the evidence of the trial thereof, if required, would be. detrimental to the public interest, it may be made confidentially to counsel on behalf of the applicant or patentee, or to any independent expert mutually agreed upon.
(2) In case of any dispute as to the making, use or exercise of an invention under this Section, or the terms therefor, or as to the existence or scope of any record or trial as aforesaid, the. matter shall be referred to the Court for decision, who shall have power to refer the whole matter or any question or issue of fact arising thereon to be tried before a special or official referee or an arbitrator upon such terms as it nosy direct. The Court, referee, or arbitrator, as the ease may be, may, with the consent of the parties, take into consideration the validity of the patent for the purposes only of the reference and for the determination of the issues between, the applicant and such Government Department.
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(3) The right to use an invention for the services of the Crown under the provisions of this Section shall include, and shall be deemed always to have included, the power to sell any articles made in pursuance of such right which are no longer required for the services of the Crown.
(4) Nothing in this Section shall affect the right of the Crown or of any person deriving title directly or indirectly from the Crown to sell or use any articles forfeited under the laws relating to the Customs or Excise.
§ Lords Amendment read a second time.
§ Sir E. POLLOCKI beg to move, as an Amendment to the Lords Amendment, at the end of Sub-section (2) to insert the words:
The Court, referee, or arbitrator, further in settling the terms as aforesaid, shall be entitled to take into consideration any benefit or compensation which the patentee, or any other person interested in the patent, may have received, directly or indirectly from the Crown or from any Government department in respect of such patent.The Clause is an important one. It provides for the payment of the sum which is to be paid for the use of a patent by a Government Department. Hon. Members will remember that it provided, instead of the Treasury fixing the sum, that the sum should be estimated by a judge of the High Court. Although the Clause as set up carries that out, it leaves two small Amendments which I beg to move. One is an Amendment for this reason: The Clause does not come into operation at once, because a large number of these questions as to what compensation should be paid to patentees for the use of their patents has now been referred to Commission. One Commission has been set up under Mr. Justice Sargant, and I think there is another Commission. It would be obviously inconvenient for Mr. Justice Sargant to be taken from those duties and to be asked to deal with those under the Act. It is therefore proposed not to bring this question into force until that Commission has completed its work. If that be so, it is necessary to make two small Amendments. The first is, that the Court, whenever it does sit, shall take into consideration any benefit or compensation which may have been granted by the Commission, which is now an operative tribunal for the purpose of fixing compensation.
§ Amendment to Lords Amendment agreed to.
§ Further Amendment to Lords Amendment made: In Sub-section (3), after the word "section" ["provisions of this sec- 604 tion shall include"], insert the words "or any provisions for which this section is substituted."