Clause 13

Notwithstanding anything contained in this Act or in any other written law, the rights conferred by a patent shall not be deemed to be infringed by the making, importation or obtaining by or on behalf of the Government of any patented medicine or drug for distribution and use in any dispensary, hospital or other medical institution maintained by or on behalf of the Government or in any dispensary, hospital or medical institution which may be specified by the Minister by notification in the Gazette.

When any patented medicine or drug is made, imported or obtained in the circumstances set out in subsection (1) of this section, the Minister shall cause a notice in such form and containing such particulars as he thinks fit to be published in the Gazette notifying the patentee as soon as practicable of such making, importation or obtaining.

The Government shall furnish the patentee with such information as to the extent of the making, importation or obtaining as he may from time to time require.

Any making, importation or obtaining of a patented medicine or drug for the purposes aforesaid, shall be made upon such terms as may be agreed upon, either before or after such making, importation or obtaining between the Government and the patentee, or, in default of agreement, as may be determined by the Registrar on a reference to him.

On a reference made to him under subsection (4) of this section, the Registrar may determine the royalty or compensation payable to the patentee in respect of the making, importation or obtaining by or on behalf of the Government of the patented medicine or drug but such royalty or compensation shall in no case exceed five per cent of the net ex-factory sale price in bulk of the patented article to be determined in such manner as may be prescribed.