(1)

At any time after the date of the sealing of a patent, the patentee may
apply to the registrar for the patent to be endorsed with the words
“licences of right” and where such an application is made the registrar
shall, if satisfied that the patentee is not precluded by contract from
granting licences under the patent, cause the patent to be endorsed
accordingly.

(2)

Where a patent has been endorsed under this section—
(a)
any person shall at any time thereafter be entitled as of right to
a licence under the patent upon such conditions as may, in
default of agreement, be decided by the commissioner on the
application of the patentee or the person requiring the licence;
(b)

(c)

(d)

the commissioner may, on the application of the holder of any
licence granted under the patent before the endorsement,
order such licence to be replaced by a licence to be granted by
virtue of the endorsement on conditions to be decided by the
commissioner;
no interdict shall, in proceedings for infringement of the patent
(otherwise than by the importation of goods) be granted
against the defendant if he undertakes to take a licence upon
conditions to be decided by the commissioner, and the
amount, if any, recoverable from the defendant by way of
damages shall in such case not exceed double the amount
which would have been payable by him as licensee if such a
licence had been granted before the earliest infringement;
the renewal fee payable in respect of the patent after the date
of the endorsement shall be one half of the renewal fee which
would have been payable if the patent had not been so
endorsed.

(3)

The licensee under a licence granted by virtue of the endorsement of
a patent in terms of this section may (unless in the case of a licence
whereof the conditions are decided by agreement, the licence
otherwise expressly provides) call upon the patentee to institute
proceedings in respect of any infringement of the patent, and if the
patentee fails to do so within two months after being so called upon,
the licensee may institute proceedings for the infringement in his own
name as if he were patentee, joining the patentee as a defendant.

(4)

A patentee so joined as a defendant shall not be liable for any costs
unless he enters an appearance and takes part in the proceedings.

(5)

An application for the endorsement of a patent in terms of this section
shall contain a statement, to be verified in such manner as may be
prescribed, that the patentee is not precluded by contract from
granting licences under the patent, and the registrar may require from
the applicant such further evidence as he may think necessary.

(6)

An application under this section for the endorsement of a patent of
addition shall be dealt with as an application for the endorsement of
the patent for the main invention also, and an application made under
this section for the endorsement of a patent in respect of which a
patent of addition is in force, shall be dealt with as an application for

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