Paragraphs 4.22-4.24, 4.27-4.29
21 The establishment of the partnership does not expose the Agency to significant operational risks. The Agency had extensive experience of working with CMG and planned no new system development projects that might impede their ability to manage the radio spectrum in the most efficient manner. CMG have provided an indemnity against costs and liabilities arising from the provision of services by Radio Spectrum International.
22 The Agency have limited their financial commitment in Radio Spectrum International to the value of their share capital (£300). CMG have undertaken to provide all working capital needed by Radio Spectrum International, and to fund initial marketing expenditure of the international work. The Agency and CMG could have terminated the arrangement to exploit commercially the Agency's systems and expertise after two years, but, following a review of prospects in the summer of 2000, both parties have agreed to continue with the international business and to review its strategy annually.
23 For the period of the contract Radio Spectrum International have been granted an exclusive licence to use crown copyright materials and the Agency's intellectual property rights for the purpose of providing international consultancy services and to sub-license these rights to customers. The Agency recognised the risk to their name and reputation from the misuse of these rights and built appropriate safeguards into contractual agreements. These require, for example, Radio Spectrum International to inform the Agency of prospective customers and the consent of the Agency before agreements are entered into. Intellectual property rights arising from the development of IT services are vested in the Agency.