(1)Any person is entitled as of right to a licence to do in the last five years of the design right term anything which would otherwise infringe the design right.
(2)The terms of the licence shall, in default of agreement, be settled by the comptroller.
(3)The Secretary of State may if it appears to him necessary in order to—
(a)comply with an international obligation of the United Kingdom, or
(b)secure or maintain reciprocal protection for British designs in other countries,
by order exclude from the operation of subsection (1) designs of a description specified in the order or designs applied to articles of a description so specified.
(4)An order shall be made by statutory instrument; and no order shall be made unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
Cases considering section 237 5
[2005] EWCA Civ 761 · 24 June 2005Interprets
The provision concerns an actual licence of right. It is conceptually distinct from the undertaking and hypothetical licence contemplated by section 239 (see paras [107]-[110]; [118]).
The right to a licence during the final five years of the design-right term was distinguished from the remedies-limiting undertaking under section 239 (see paras [107]; [110]).
The Comptroller's power to settle licence terms in default of agreement formed part of the actual-licence machinery, which need not be completed for section 239 to limit remedies (see paras [107]; [110]).
[2014] EWHC 2625 (IPEC) · 31 July 2014
The court applied the provision governing the availability of licences of right to determine whether the statutory limitation mechanism could become relevant to the account of profits. (see paras [34]-[36])
[2004] EWHC 2981 (Ch) · 21 December 2004
The court confirms that a person is entitled as of right to a licence during the last five years of the design-right term. Accordingly, monetary relief rather than injunctive relief is generally appropriate during that period. (see paras [40], [175])
The court notes that the terms of a compulsory licence are settled by the comptroller in default of agreement. (see para [175])
What each judgment says about section 237 is in the case-law panel in the full Act.