notify the application to any person entered on the Register as being entitled to an interest in the patent and, if satisfied, after giving any such person an opportunity to be heard, that the patentee is not precluded by contract from granting licences under the patent, cause to be entered in the Register notice that licences in respect thereof may be issued as of right. (3) Where an entry in the Register is made in terms of subsection (2) in respect of a patent— (a) any person shall, at any time thereafter, be entitled as of right to a licence under the patent upon such terms as may, in default of agreement and subject to subsection (4), be settled by the Registrar on the application of the patentee or the person requiring the licence; [amended by Act 9 of 2002, with effect from the 20th December, 2002.] (b) the Registrar may, on the application of the holder of any licence granted under the patent before the entry in the Register, order the licence to be exchanged for a licence to be granted by virtue of the entry upon terms to be settled in terms of paragraph (a); (c) if in proceedings for infringement of the patent, otherwise than by the importation of goods, the defendant undertakes to take a licence upon terms to be settled by the Registrar in terms of paragraph (a), no interdict shall be granted against him, and the amount, if any, recoverable against him by way of damages shall not exceed double the amount which would have been payable by him as licensee if such a licence had been granted before the earliest infringement; (d) the renewal fees payable in respect of the patent after the date of the entry in the Register shall be one-half of the renewal fees which would be payable if the entry were not made. (4) In settling the terms of the licence for the purposes of paragraph (a) or (b) of subsection (3), the Registrar shall— (a) take cognizance of section thirty-two with respect to a patent falling under that section; and (b) provide, inter alia, for the following matters— (i) the period of the licence; (ii) the terms of renewal, if any; (iii) the amount of and method for payment of royalties; (iv) arrangements for cancellation of the licence upon application made to him by the patentee after failure by the licensee to pay royalties or to observe any other conditions included in the licence by the Registrar, who is hereby authorized to include such conditions, so, however, that no such licence may be cancelled unless the licensee, after reasonable notice given to him by the patentee, has failed to observe such conditions. (5) The licensee under any licence granted by virtue of an entry in the Register made in terms of this section shall, unless, in the case of a licence the terms of which are settled by agreement, the licence otherwise expressly provides, be entitled to call upon the patentee to take proceedings to prevent any infringement of the patent, and if the patentee refuses or neglects to do so within two months after being so called upon, the licensee may institute proceedings for the infringement in his own name as if he were patentee, making the patentee a defendant: Provided that a patentee so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings. (6) An application for an entry in the Register made in terms of this section shall contain a statement, to be verified in such manner as may be prescribed, that the patentee is not precluded by contract from granting licences under the patent, and the Registrar may require from the applicant such further evidence as he may think necessary. (7) An application for an entry in the Register made in terms of this section— (a) which relates to a patent of addition, shall be treated as an application

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