Section 17: Exploitation by a Government agency or third person:

17. Exploitation by a Government agency or third person:___ (1) Subject to sub-section (2), where— (i) the public interest, in particular, national security, nutrition, health or the development of other vital sectors of the national economy requires the exploitation of a registered layout-design for public non-commercial use; or (ii) a judicial or administrative body has determined that the manner of exploitation of a registered layout-design, by the right-holder, or his licensee, is anticompetitive, and the Federal Government is satisfied that exploitation of the layout-design in accordance with the provisions of this section would remedy such practice, the Federal Government may, even without the consent of the right holder, decide that a Government agency or a third person designated by the Federal Government may exploit the layout-design. (2) The Federal Government shall, before taking any decision under sub-section (1), give the right-holder and any interested person an opportunity of being heard if he wishes to be heard. (3) The exploitation of a layout-design shall be limited to the purpose for which it was authorized under sub-section (1), and shall be subject to the payment to the right-holder of an adequate remuneration therefore taking into account the economic value of the said authorization as the Federal Government may determine. (4) Upon request of the right-holder, or of the beneficiary of the authorization under sub- section (1), the Federal Government may after hearing the parties, if either or both wish to be heard, vary the terms of the decision authorizing the exploitation of the layout-design to the extent that changed circumstances justify such variation. (5) Upon the request of the right-holder, the Federal Government shall terminate the authorization if it is satisfied that the circumstances which led to the decision have ceased to exist and are unlikely to recur or that the beneficiary of the authorization under sub-section (1) has failed to comply with the terms of such authorization. (6) Notwithstanding the provisions of sub-section (5), the Federal Government shall not terminate an authorization if it is satisfied that the adequate protection of the legitimate interests of the beneficiary of the authorization justifies the maintenance of such authorization. (7) Where a third person has been designated by the Federal Government, the authorization may only be transferred with the enterprise or business of the beneficiary of authorization or with the part of the enterprise or business within which the layout-design is being exploited. (8) A request for grant of authorization under sub-section (1) shall be accompanied by evidence that the right-holder has received, from the person seeking the authorization, a request for a contractual licence but that person has been unable to obtain such licence on reasonable commercial terms and conditions and within a reasonable time: Provided that this sub-section shall not apply in cases of— (i) national emergency or other circumstantial urgency provided that in such cases the owner of the patent shall be informed of decision of the Federal Government as soon as reasonably practicable; (ii) public non-commercial use; and (iii) anti-competitive practices determined as such by a judicial or administrative body in accordance with clause (ii) of sub-section (1).

Effective date: 2000-01-01

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