140. Avoidance of certain restrictive conditions
(1) In a contract for sale/lease of a patented article, or a licence to manufacture/use a patented article or work a patented process, it is unlawful to insert a condition that: (a) tie-in requires the purchaser/lessee/licensee to acquire non-patented articles only from the vendor/lessor/licensor or their nominees; (b) restricts the purchaser/lessee/licensee from using a non-patented article not supplied by the vendor/lessor/licensor; (c) restricts using any process other than the patented process; or (d) imposes exclusive grant-back, prevents challenges to the patent’s validity, or coercive package licensing. Any such condition is void.
(2) Such a condition remains caught by sub-section (1) even if inserted in a separate agreement.
(3) In infringement proceedings, it is a defence that a contract containing such an unlawful condition was in force at the time — unless the plaintiff was not a party to it and proves the condition was inserted without his knowledge and consent.
(4) This section does not: affect a condition prohibiting resale of goods of a different maker; validate an otherwise-invalid contract; or affect a lessor/licensor’s reservation of the right to supply repair parts for a leased/licensed patented article.
