Chapter 1: Introduction
Overview
1648.This Chapter introduces patent allowances. They are given to persons incurring qualifying expenditure on the purchase of patent rights. The Chapter defines “patent rights”. It contains extensions to deal with licences and cases if a patent has not yet been granted for an invention. “Qualifying expenditure” is defined in Chapter 2.
1649.Section 464 requires qualifying expenditure on purchasing patent rights in order for allowances to be given and defines “patent rights”.
1650.Section 465 extends this Part to deal with certain cases concerning rights in respect of an invention if a patent has not yet been granted.
1651.Section 466 extends this Part to deal with grants of licences in respect of patents.
Section 464: Patent allowances
1652.This section is based on section 533(1) of ICTA. It explains that allowances under this Part are only available to persons who incur qualifying expenditure on purchasing patent rights and defines “patent rights”.
Section 465: Future patent rights
1653.This section is based on section 533(5) and (6) of ICTA. It treats expenditure by a person on the right to acquire future patent rights as if it was on the purchase of patent rights – even if a patent has not yet been granted in respect of the invention. Relief would not be available to the payer without this provision.
1654.Subsection (2) treats the expenditure on the right to acquire future patent rights as if it were expenditure on the patent rights if that person subsequently acquires those rights.
1655.Subsection (4) gives corresponding treatment to the recipient of the payment. It treats the recipient as receiving the sum for a sale of patent rights even if a patent has not yet been granted for the invention.
Section 466: Grant of licences
1656.This section is based on section 533(2) and (3) of ICTA. It enables:
section 468 or 469 to apply to licence acquisitions. They would not otherwise as they require a purchase of patent rights; and
section 476(2) to apply to the grant of a licence. Section 476(2) requires a sale of patent rights.
