s 51 Avoidance of certain restrictive conditions
51.—(1) Subject to this section, any condition or term of a contract for the supply of a patented product or of a licence to work a patented invention, or of a contract relating to any such supply or licence, is void insofar as it purports —(a) in the case of a contract for supply, to require the person supplied to acquire from the supplier, or the supplier’s nominee, or prohibit the person supplied from acquiring from any specified person, or from acquiring except from the supplier or the supplier’s nominee, anything other than the patented product; (b) in the case of a licence to work a patented invention, to require the licensee to acquire from the licensor or the licensor’s nominee, or prohibit the licensee from acquiring from any specified person, or from acquiring except from the licensor or the licensor’s nominee, anything other than the product which is the patented invention or (if it is a process) other than any product obtained directly by means of the process or to which the process has been applied; or (c) in either case, to prohibit the person supplied or the licensee from using articles (whether patented products or not) which are not supplied by, or any patented process which does not belong to, the supplier or licensor, or the supplier’s or licensor’s nominee, or to restrict the right of the person supplied or the licensee to use any such articles or process. (2) In proceedings against any person for infringement of a patent, it is a defence to prove that at the time of the infringement there was in force a contract relating to the patent made by or with the consent of the claimant or a licence under the patent granted by or with the consent of the claimant and containing in either case a condition or term void by virtue of this section.[Act 25 of 2021 wef 01/04/2022] [Act 31 of 2022 wef 01/11/2022] (3) A condition or term of a contract or licence shall not be void by virtue of this section if —(a) at the time of the making of the contract or granting of the licence, the supplier or licensor was willing to supply the product, or grant a licence to work the invention, (as the case may be) to the person supplied or the licensee, on reasonable terms specified in the contract or licence and without any such condition or term as is mentioned in subsection (1); and (b) the person supplied or the licensee is entitled under the contract or licence to relieve himself, herself or itself of his, her or its liability to observe the condition or term on giving to the other party 3 months’ notice in writing, and subject to payment to that other party of such compensation (being, in the case of a contract to supply, a lump sum or rent for the residue of the term of the contract and, in the case of a licence, a royalty for the residue of the term of the licence) as may be determined by an arbitrator appointed by the Minister. (4) If in any proceedings it is alleged that any condition or term of a contract or licence is void by virtue of this section, it shall lie on the supplier or licensor to prove the matters set out in subsection (3)(a). (5) A condition or term of a contract or licence shall not be void by virtue of this section by reason only that it prohibits any person from selling goods other than those supplied by a specific person or, in the case of a contract for the hiring of or licence to use a patented product, that it reserves to the bailor or licensor, or the bailor’s or licensor’s nominee, the right to supply such new parts of the patented product as may be required to put or keep it in repair.