C1

Part 8 Patent allowances

Chapter 1 Introduction

464 Patent allowances

1

Allowances are available under this Part if a person incurs qualifying expenditure on the purchase of patent rights.

2

In this Part “patent rights” means the right to do or authorise the doing of anything which would, but for that right, be an infringement of a patent.

465 Future patent rights

1

References in this Part to expenditure incurred on the purchase of patent rights include expenditure incurred on obtaining a right to acquire future patent rights.

2

If a person—

a

incurs expenditure on obtaining a right to acquire future patent rights, and

b

subsequently acquires those rights,

the expenditure is to be treated as having been expenditure on the purchase of those rights.

3

A right to acquire future patent rights” means a right to acquire in the future patent rights relating to an invention in respect of which the patent has not yet been granted.

4

References in this Part to the proceeds of a sale of patent rights include a sum received from a person which is treated under this section as expenditure incurred by him on the purchase of patent rights.

466 Grant of licences

1

The acquisition of a licence in respect of a patent is to be treated as the purchase of patent rights.

2

The grant of a licence in respect of a patent is to be treated as a sale of part of patent rights.

3

But the grant by a person entitled to patent rights of an exclusive licence is to be treated as a sale of the whole of those rights.

4

Exclusive licence” means a licence to exercise those rights to the exclusion of the grantor and all other persons for the period remaining until the rights come to an end.