The Industrial Property Act, 2001 33 Director shall refuse to register the licence contract, stating the reasons for such refusal. (5) Before refusing to register the licence contract, the Managing Director shall notify the petitioner and allow the parties: (a) to submit the observations, if any; (b) to correct any defect in the petition; or (c) to amend any term, or to correct any defect, in the licence contract that has been declared by the Managing Director to be a term or defect precluding registration, within forty five days from the date of the notification. (6) A licence contract shall be void if the registration has been refused by the Managing Director in accordance with the provisions of this Act. Prohibited terms in licence contracts 69. The Managing Director may refuse to register a licence contract if he is of the opinion that any clause in a licence contract imposes unjustified restrictions on the licensee with the consequence that the contract, taken as whole, is harmful to the economic interests of Kenya, and that the effect of any such term contained in the contract is: (i) to permit or require the importation of technology from outside Kenya when substantially similar or equivalent technology may be obtained on the same or more favourable conditions without importation from abroad; (ii) to require payment of a price, royalty or other consideration which is disproportionate to the value of the technology to which the contract relates; (iii) to require the licensee to acquire any materials from the licensor or from sources designated or approved by him, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced; (iv) to prohibit the licensee from acquiring, or to restrict his acquisition of, any materials from any source, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced; (v) to prohibit the licensee from using, or to restrict his or her use of any materials which are not supplied by the licensor or by sources designated or approved by him, unless it is otherwise impossible, for all practical purposes, to ensure the quality of the products to be produced; (vi) to require the licensee to sell products produced by hi m under the contract exclusively or principally to persons designated by the licensor; (vii) to require the licensee to make available to the licensor, without appropriate consideration any improvements made by the licensee with respect to the technology to which the contract relates;