CA75030 - Patents: General: Licences

CAA01/S466, CAA01/S482

A person who acquires a licence in respect of a patent is treated as buying patent rights. This lets a person who acquires a licence in respect of a patent claim capital allowances because the person is treated as buying patent rights.

The grant of a licence is treated as a sale of patent rights and the legislation about the sale of patent rights applies. The grant of a licence that gives exclusive rights for the remainder of the term of the patent rights is treated as a sale of the whole of the patent rights. There is guidance on sales at CA75200.

When the Crown or a foreign government uses a patent it is treated as if it is using it under a licence. This means that the legislation about the grant of a licence applies and so the Crown or foreign government is treated as if it has bought patent rights. The owner of the patent is treated as if the rights in the patent had been sold to the Crown or foreign government.