The Industrial Property Act, 2001
33
Director shall refuse to register the licence contract, stating the reasons for
such refusal.
(5) Before refusing to register the licence contract, the Managing Director
shall notify the petitioner and allow the parties: (a) to submit the observations, if any;
(b) to correct any defect in the petition; or
(c) to amend any term, or to correct any defect, in the licence contract that
has been declared by the Managing Director to be a term or defect
precluding registration, within forty five days from the date of the
notification.
(6) A licence contract shall be void if the registration has been refused by
the Managing Director in accordance with the provisions of this Act.
Prohibited terms
in licence
contracts
69. The Managing Director may refuse to register a licence contract if he is
of the opinion that any clause in a licence contract imposes unjustified
restrictions on the licensee with the consequence that the contract, taken as
whole, is harmful to the economic interests of Kenya, and that the effect of
any such term contained in the contract is: (i) to permit or require the importation of technology from outside Kenya
when substantially similar or equivalent technology may be obtained on the
same or more favourable conditions without importation from abroad;
(ii) to require payment of a price, royalty or other consideration which is
disproportionate to the value of the technology to which the contract relates;
(iii) 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;
(iv) 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;
(v) to prohibit the licensee from using, or to restrict his or her 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;
(vi) to require the licensee to sell products produced by hi m under the
contract exclusively or principally to persons designated by the licensor;
(vii) 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;