Capital Allowances Act 2001 section 482

Sums paid for Crown use etc treated as paid under licence

Section 482 ensures that when a government uses a patented invention and makes payments for that use, those payments are treated as if they were made under a licence, bringing them within the scope of the patent allowances rules.

• The section applies when a patented invention is used by or for the services of the Crown under sections 55 to 59 of the Patents Act 1977, or by a foreign government under equivalent provisions in that country's law
• Any such government use of a patented invention is deemed to have taken place under a licence, even though no formal licence agreement exists
• Any sums paid by the government in respect of that use are similarly treated as payments made under a licence
• This deemed licence treatment allows the provisions elsewhere in the Act dealing with the sale of patent rights to apply to these government payments