No.	4907	
Act No. 1, 2012

Government	Gazette	23	March	2012	

91

INDUSTRIAL PROPERTY ACT, 2012

Assignability of licences or user rights
168.	 (1)	
Where	 a	 licence	 is	 granted	 to	 use	 a	 registered	 trade	 mark	 as	
contemplated	in	section	165,	or	where	a	person	is	allowed	to	use	a	registered	trade	mark	
as	 contemplated	 in	 section	 170,	 such	 licence	 or	 user	 right	 may	 only	 be	 transferred	 to	
another	person	–
	

(a)	

with	the	agreement	and	consent	of	the	trade	mark	owner;	or

	

(b)	

if	the	transfer	takes	place	with	the	transfer	of	the	enterprise	or	business	
of	the	person	to	whom	the	licence	or	user	right	was	granted.

	

(2)	

Any	assignment	or	transfer	contrary	to	subsection	(1)	is	invalid.

Effect of invalidity of registration on licence
169.
(1)	
Any	 contract,	 in	 so	 far	 as	 it	 relates	 to	 a	 licence	 under	 a	 trade	
mark	 application	 or	 a	 registration	 to	 use	 such	 trade	 mark,	 terminates	 on	 the	 date	 on	
which	 the	 trade	 mark	 application	 is	 refused,	 or	 on	 which	 the	 trade	 mark	 registration,	
under	 which	 the	 licence	 was	 granted,	 expires,	 is	 revoked	 removed	 or	 otherwise	 ceases	
to	protect	such	trade	mark.
(2)	
Where	a	contract	relates	to	licences	under	more	than	one	application	or	
	
registration,	such	part	of	the	contract	as	relates	to	any	particular	licence	terminates	when	
the	 application	 or	 the	 registration	 under	 which	 it	 was	 granted	 is	 refused	 or	 expires,	 is	
revoked	 or	 otherwise	 ceases	 to	 protect	 the	 trade	 mark	 concerned,	 and	 the	 contract	 as	 a	
whole	terminates	when	all	the	registrations	under	which	all	such	licences	were	granted	
and	 which	 were	 in	 force	 at	 the	 time	 when	 the	 contract	 became	 operative,	 expire,	 are	
revoked	or	otherwise	cease	to	protect	the	relevant	trade	marks.
(3)	
Nothing	 in	 this	 section	 affects	 any	 right	 to	 terminate	 a	 contract	 or	 a	
	
condition	in	a	contract	independently	of	this	section.
Registered use
170.
(1)	
Where	a	registered	trade	mark	is	used	by	a	person	other	than	the	
owner	thereof	but	with	the	licence	of	the	owner,	whether	in	terms	of	a	licence	agreement	
or	by	reason	of	another	instrument	of	control,	and	whether	or	not	such	licence	or	other	
instrument	 has	 been	 recorded	 as	 contemplated	 in	 sections	 165(2)	 and	 167,	 such	 use	 is	
deemed	to	be	permitted	use	for	the	purposes	of	subsection	(2).
(2)	
The	 permitted	 use	 of	 a	 trade	 mark	 referred	 to	 in	 subsection	 (1)	 is	
	
deemed	to	be	use	by	the	owner	and	may	not	be	regarded	as	use	by	a	person	other	than	
the	owner	for	the	purposes	of	section	176	or	for	any	other	purpose	for	which	such	use	is	
material	under	this	Act	or	at	common	law.
(3)	
Subject	to	the	provisions	of	this	section,	a	person,	other	than	the	owner	
	
of	a	registered	trade	mark,	who	uses	such	trade	mark	with	the	licence	of	the	owner,	may	
be	 registered	 as	 a	 registered	 user	 in	 terms	 of	 section	 171	 in	 respect	 of	 all	 or	 any	 of	 the	
goods	or	services	in	respect	of	which	the	trade	mark	is	registered.

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