- If any invention (patent granted or patent filed) is used by the authorised representative of the Central Government (an officer so designated) or by the patentee or patent applicant itself, for the purposes of the Central Government by order, no licenses or assignments or agreements made by the applicant or patentee with any third parties for giving share in revenue or monetary or any benefits out of the use of the inventions shall be applicable for the Government to pay as royalties or share to the applicant or assignee; unless the agreement made by the Government carry the terms within the agreement that,
- restricts or imposes certain conditions to the Government for using the invention for its purposes
- mandates the Government for making any payments for using the same.
- No such use or reproduction of any documents related to such patents shall be considered as an infringement of Patent or any Copyright by the Government.
- Upon cases when an agreement made by the Government mandates any royalties or other benefits for use of the Invention by the Government for its purposes to the Patentee or assignee and if the patentee has already licensed the patent to a third party on terms of royalty or any other monetary benefits, any sum so payable shall be divided between the patentee and the licensee as per the proportion agreed by them or as determined by the High Court considering the expenses incurred in developing the invention or for making payments to the patentee apart from the royalties and other benefits given by the licensee to the Patentee for the purpose of licensing.