Legislative Implementation of Flexibilities - United Republic of Tanzania

Title:	Sections 47 and 48 of the Patents Act No. 1 of 20/01/1987
Field of IP:	Patents
Type of flexibility:	Ex-officio IP office control of anti-competitive clauses in licensing agreements
Summary table:

Provisions of Law

Petition for registration

47.-(1) All licence contracts, including modifications thereof, shall be submitted to the Registrar for registration in the patent register.

(2) A petition for registration may be made by any party to the contract.

(3) The petition shall be accompanied by the documents prescribed by the Regulations.

(4) The petition shall be subject to the payment of a prescribed fee.

(5) The Registrar shall issue to the applicant a receipt, which shall be proof of the fact of filing the petition and of the date on which it was filed; if no receipt is issued within 14 days from the date of the petition, the petitioner may rely on other evidence to prove the said fact and date,

(6) Where-

(i) section 46 or subsections (2) to (4) of this section, and the rules relating thereto, have not been complied with, or

(ii) the licence contract is unregistrable under section 48, the Registrar shall refuse to register the licence contract, stating the reasons for such refusal-

(7) Before he refuses to register the licence contract, the Registrar shall notify the petitioner and allow the parties-

(i) to submit any observations;

(ii) to correct any defect in the petition;

(iii) to amend any term, or to correct any defect, in the licence contract that has been declared by the Registrar to be a term or defect precluding registration, within 45 days from the date of the notification referred to herein.

(8) A licence contract shall be void if the registration has been refused by the Registrar in accordance with the provisions of this Act.

Prohibited terms in licence contracts

48. The Registrar may, with the approved of and after consultation with other competent government authorities' refuse to register a licence contract if the effect of its terms is-

(a) to permit or require the importation of technology from abroad when substantially similar or equivalent technology may be obtained on the same or more favourable conditions without importation from abroad;

(b) to require payment of a price, royalty or other consideration which is disproportionate to the value of the technology to which the contract relates;

(c) to require the licensee to acquire any materials from the licensor or from sources designated or approved by him, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced;

(d)to prohibit the licensee from acquiring, or to restrict his acquisition of, any materials from any source, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced;

(e) to prohibit the licensee from using, or to restrict his use of, any materials which are not supplied by the licensor or by sources designated or approved by him, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced;

(f) to require the licensee to sell products produced by him under the contract exclusively or principally to persons designated by the licensor;

(g) to require the licensee to make available to the licensor without appropriate consideration any improvements made by the licensee with respect to the technology to which the contract relates;

(h) to limit the volume of the products produced by the licensee with the help of the technology to which the contract relates;

(i) to prohibit or restrict the export of the products produced by the licensee;

j) to require the licensee, to employ on permanent basis persons designated by the licensor;

(k) to impose restrictions on research or technological development carried out by the licensee;

(l)to prohibit or restrict the use by the licensee of any technology other than the technology to which the contract relates;

(m) to extend the coverage of the contract to technology not required for the use of the technology which is the main subject of the contract and to require consideration for such additional technology;

(n) to fix prices for the sale or resale of the products produced by the licensee with the help of the technology to which the contract relates;

(o) to exempt the licensor from any liability consequent upon any defect inherent in the technology to which the contract relates or to restrict such liability;

(p) to prohibit or restrict the use by the licensee, after the expiration of the contract, of the technology acquired as a result of the contract, subject, however, to any right of the licensor under the patent;

(q) to require the disputes arising from the interpretation or performance of the contract be governed by a law other than the law of the United Republic or that such disputed be brought before courts located in the United Republic other than the country;

(r) to establish the duration of the contract for a period which is unreasonably long in relation to the economic function of the contract, provides that any period which does not exceed the duration of the patent to which the contract relates shall not be regarded as unreasonably long.