Paragraph 18

United Kingdom

(1)

In relation to any use of a registered design or a design in respect of which an application for registration is pending, being a use made on or after the appointed day for purposes referable to functions of the Post Office—

(a)

by the Post Office under any power conferred by or by virtue of the foregoing provisions of this Act;

(b)

by a person authorised by an authority continued in force by paragraph 12 above or conferred by virtue of that paragraph or paragraph 13 above;

(c)

by the registered proprietor or applicant for registration for the purpose of satisfying a liability under an agreement in the case of which rights and liabilities thereunder vest in the Post Office by virtue of sections 16 to 18 of this Act;

the provisions of any licence, assignment or agreement made,—

(i)

before the appointed day, between the registered proprietor or applicant for registration or any person who derives title from him or from whom he derives title and any person other than a government department; or

(ii)

on or after the appointed day, between the registered proprietor or applicant for registration or any person who derives title from him or from whom he derives title and any person other than the Post Office;

shall be of no effect so far as those provisions restrict or regulate the use of the design, or any model, document or information relating thereto, or provide for the making of payments in respect of any such use, or calculated by reference thereto; and the reproduction or publication of any model or document in connection with the said use shall not be deemed to be an infringement of any copyright F1or design right subsisting in the model or document.

(2)

Where an exclusive licence granted otherwise than for royalties or other benefits determined by reference to the use of the design is in force under the registered design, then—

(a)

in relation to any use of the design which, but for the provisions of this paragraph and paragraph 12 of this Schedule would constitute an infringement of the rights of the licensee, paragraph 15 of this Schedule shall have effect as if, for the reference in sub-paragraph (b) thereof to the registered proprietor, there were substituted a reference to the licensee; and

(b)

in relation to any use of the design by the licensee by virtue of an authority continued in force by, or conferred by virtue of, paragraph 12 of this Schedule, paragraph 15 thereof shall have effect as if sub-paragraph (b) were omitted.

(3)

Subject to the provisions of the last foregoing sub-paragraph, where the registered design or the right to apply for or obtain registration of the design has been assigned to the registered proprietor in consideration of royalties or other benefits determined by reference to the use of the design, then—

(a)

in relation to any use of the design by virtue of paragraph 12 of this Schedule, paragraph 15 thereof shall have effect as if, in sub-paragraph (b), the reference to the registered proprietor included a reference to the assignor, and any sum payable by virtue of that paragraph or an agreement referred to in paragraph 13 of this Schedule shall—

(i)

except in a case where an agreement was made before the appointed day between the registered proprietor and the assignor as to the proportions in which any sum payable in relation to the use of the design by or under the authority of the department of the Postmaster General by virtue of paragraph 1 of Schedule 1 to the M1Registered Designes Act 1949 should be divided or a determination as to those proportions was made by the court under paragraph 3 of that Schedule before the appointed day, be divided between them in such proportions as may be agreed between them or as may in default of agreement be determined by the court on a reference under paragraph 19 of this Schedule;

(ii)

in the said excepted case, be divided in such proportions as may be provided for by the said agreement or determination; and

(b)

in relation to any use of the design made after the beginning of the appointed day, being use referable to the functions of the Post Office and made by the registered proprietor for the purpose mentioned in sub-paragraph (1)(c) above, paragraph 15(b) of this Schedule shall have effect as if that use were made by virtue of an authority continued in force by paragraph 12 of this Schedule.

(4)

Where, under paragraph 15 of this Schedule or such an agreement as is referred to in paragraph 13 thereof, payments are required to be made by the Post Office to a registered proprietor in respect of any use of a design, any person, being the holder of an exclusive licence under the registered design (not being such a licence as is mentioned in sub-paragraph (2) of this paragraph) authorising him to make that use of the design, shall—

(a)

except where an agreement as to the recovery from the registered proprietor of a part of the payments made under paragraph 1(3) of the said Schedule 1 by the department of the Postmaster General in respect of the use of the design was made before the appointed day under paragraph 2(4) of that Schedule or a determination was made before that day under paragraph 3 of that Schedule by the court as to such recovery, be entitled to recover from the registered proprietor such part (if any) of those payments as may be agreed upon between that person and the registered proprietor or as may, in default of agreement be determined by the court on a reference under paragraph 19 of this Schedule, to be just having regard to any expenditure incurred by that person—

(i)

in developing the said design; or

(ii)

in making payments to the registered proprietor, other than royalties or other payments determined by reference to the use of the design, in consideration of the licence;

(b)

in the said excepted case, be entitled to recover such part, if any, of the payments as may be provided for by the said agreement or determination;

and if, at any time before the amount of any such payment has been settled, that person gives to the Post Office notice in writing of his interest, any agreement as to the amount of that payment shall be of no effect unless it is made with his consent; and for the purposes of this sub-paragraph, a notice given before the appointed day to the department of the Postmaster General in pursuance of paragraph 2(4) of the said Schedule 1 shall have effect as if it had been given to the Post Office.

(5)

Where any models, documents or information relating to a registered design are used in connection with any such use of the design as is described in sub-paragraph (1) above, paragraph 15 of this Schedule shall, whether or not it applies to the use of the design, apply to the use of the models, documents or information as if, for the reference therein to the registered proprietor, there were substituted a reference to the person entitled to the benefit of any provision of a licence, assignment or agreement which is rendered inoperative by the said sub-paragraph (1) in relation to that use.

(6)

Nothing in this paragraph shall be construed as authorising the disclosure to the Post Office or any other person of any model, document or information to the use of which this paragraph applies in contravention of any such licence, assignment or agreement as aforesaid.