—(1) Where an order is made under section 23(1) that a registered design be transferred from any person or persons (referred to in this section as the old owner or owners) to one or more persons (whether or not including an old owner), then, except in a case falling within subsection (2), any licences or other rights granted or created by the old owner or owners shall, subject to section 34 and to the provisions of the order, continue in force and be treated as granted by the person or persons to whom the design is ordered to be transferred (referred to in this section as the new owner or owners).
(2) Where an order is so made that a registered design shall be transferred from the old owner or owners to one or more persons none of whom was an old owner (on the ground that the design was registered in the name of a person not entitled to be registered as an owner), any licences or other rights in the design shall, subject to the provisions of the order and subsection (3), lapse on the registration of that person or those persons as the new owner or owners of the design.
(3) Where an order referred to in subsection (2) is made and, before particulars of the reference resulting in the making of the order are entered in the Register, the old owner or owners or a licensee —
carried out in good faith an act which would have constituted an infringement of the design if particulars of the reference had been registered at the time the act was done; or
made in good faith effective and serious preparations to carry out such an act,
the old owner or owners or the licensee shall, on making a request to the new owner or owners within the prescribed period, be entitled to be granted a licence (but not an exclusive licence) to continue to do the act or, as the case may be, to do the act.
(4) A licence under subsection (3) shall be for a reasonable period and subject to reasonable terms.
(5) The new owner or owners of the registered design or any person claiming that he is entitled to be granted a licence under subsection (3) may apply to the Court for a determination of whether —
that person is so entitled; or
the period or terms of any such licence granted are reasonable.
(6) The Court shall make the determination under subsection (5) and may —
order the grant of a licence on such terms and for such period as it considers reasonable; or
vary the period or terms of the licence.
[HK Designs, s. 42; Patents 1995 Ed., s. 48]