Hong Kong Ordinances

PATENTS ORDINANCE - SECT 71

Compensation for loss of profit

(1) Where Government use is made of an invention, the Government shall pay-

   (a)  to the proprietor of the patent; or

   (b)  if there is an exclusive licence in force in respect of the patent, to
        the exclusive licensee, compensation for any loss resulting from his
        not being awarded a contract to supply the patented product or, as the
        case may be, to perform the patented process or supply a thing made by
        means of the patented process.

(2) Compensation is payable only to the extent that such a contract could have
been fulfilled from the existing manufacturing or other capacity of the
proprietor or licensee; 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
or other capacity was under-used.

(4) No compensation is payable in respect of any failure to secure contracts
to supply the patented product or, as the case may be, to perform the
patented process or supply a thing made by means of the patented process,
otherwise than for Government use.

(5) The amount payable shall, if not agreed between the proprietor or licensee
and the Government, be determined by the court on a reference under
section 72, and is in addition to any amount payable under section  69 or 70.
[cf. 1977 c. 37 s. 57A U.K.]