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As enacted
Contents

Part V · Chapter XIX Marks and Trade Names

128. Nullity of licence contract and certain clauses

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

A licence contract shall be null and void in the absence of stipulations ensuring effective control by the licensor of the quality of the goods or services in respect of which the mark may be used.

(2)

Any clause or condition in a licence contract shall be null and void in so far as it imposes upon the licensee restrictions not derived from the rights conferred by this Part on the registered owner of the mark, or which are unnecessary for the safeguarding of such rights :

Provided that –

(a)

restrictions concerning the scope, extent, duration of use of the mark or the geographical area in or the quality or quantity of the goods or services in connection with which the mark may be used ;

(b)

restrictions justified by the stipulations referred to in subsection (1) ; and

(c)

obligations imposed upon the licensee to abstain from all acts capable of prejudicing the validity of the registration of the mark, shall not be deemed to constitute a restrictions as mentioned above.