§ Lord BROWNasked Her Majesty's Government:
In which developed overseas countries are companies which form a licence agreement with a licensor in another country, statutorily forced to submit such agreements for approval to their Governments? In which of the above cases, where Government approval must be obtained, is there a limitation imposed on the amount of royalties paid? How much is the royalty in each country where a limit exists?
Lord ORAMComprehensive information is not held and kept up-to-date centrally. Recent inquiries, however, show that Greece, Japan, Spain and South Africa require licensing agreements to be approved by the Government, but only Spain and South Africa impose limits on the royalties payable (normally 3 per cent. and 5 per cent. respectively, though exceptionally these limits are raised to 5 per cent. and 6½ per cent.). It is usual for developed countries to require royalty payments to be approved by their exchange control authorities.
House adjourned at twenty-eight minutes past seven o'clock.