The Community Design Regulations 2005

Crown use: compensation for loss of profitU.K.

This section has no associated Explanatory Memorandum

4.—(1) Where Crown use is made of a [F1supplementary unregistered] design, the government department concerned shall pay—

(a)to the holder of the [F1supplementary unregistered] design, or

(b)if there is an exclusive licence in force in respect of the [F1supplementary unregistered] design, to the exclusive licensee,

compensation for any loss resulting from his not being awarded a contract to supply the products to which the [F1supplementary unregistered] design is applied or in which it is incorporated.

(2) Compensation is payable only to the extent that such a contract could have been fulfilled from his existing manufacturing capacity; but is payable notwithstanding the existence of circumstances rendering him ineligible for the award of such a contract.

(3) In determining the loss, regard shall be had to the profit which would have been made on such a contract and to the extent to which any manufacturing capacity was under-used.

(4) No compensation is payable in respect of any failure to secure contracts for the supply of products to which the [F1supplementary unregistered] design is applied or in which it is incorporated otherwise than for the services of the Crown.

(5) The amount payable shall, if not agreed between the holder of the [F1supplementary unregistered] design or licensee and the government department concerned with the approval of the Treasury, be determined by the [F2design] court on a reference under paragraph 5; and it is in addition to any amount payable under paragraph 2 or 3.

(6) In the application of this paragraph to Northern Ireland, the reference in sub-paragraph (5) to the Treasury shall, where the government department concerned is a Northern Ireland department, be construed as a reference to the Department of Finance and Personnel.

(7) In the application of this paragraph to Scotland, where the government department referred to in sub-paragraph (5) is any part of the Scottish Administration, the words “with the approval of the Treasury” in that sub-paragraph are omitted.

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