27.3.1 If the Authority infringes IPR (either during the course of the Contract, other than when using IPR for the purpose of the Contract or where the infringement results from the act or omission of the Contractor, or after expiry or termination), it should generally bear any resulting costs. The Authority should bear the owner's costs and any costs incurred by the Contractor (e.g. if sued by the owner or if it has to procure a licence of different IPR from another party). This will normally require the Authority to offer an indemnity to the Contractor.
27.3.2 The Authority may contribute IP to the Project for the Contractor to use. If it does not own the relevant IPR, it must ensure that it is entitled to pass it on to the Contractor (e.g. by way of sub-licence). If the Authority infringes the owner's IPR by passing the relevant IP on to the Contractor, the Authority should be liable for any resulting costs unless Section 27.3.3 applies.
27.3.3 If the Contractor uses any IP which the Authority has brought into the Project, it should ensure that it is entitled to do so. It will be liable for any infringement by it unless it is unable (acting reasonably) to verify such matter.