33.4  INFRINGEMENT OF IPR

33.4.1  The general principle is that any costs resulting from infringement of third party IPR resulting from: (i) the use of IP or materials supplied by the Contractor or on its behalf (i.e. Project Data, Contractor Materials and Third Party Materials) provided they are used in accordance with the Contract or (ii) use of IP or materials supplied by the Authority (i.e. Authority Data) other than in accordance with the Contract, should be borne by the Contractor. The Contractor should be responsible for any costs incurred by the owner of the IPR and the Authority. This will normally require the Contractor to provide an indemnity to the Authority. The Contractor may also be asked to indemnify more broadly for any infringement of third party IPR resulting from the provision of the Services or Works (depending on how these terms are defined) on a case by case basis.

33.4.2  If the infringement or related legal action threatens the delivery of the Service, the Authority should be notified as soon as possible. The Authority should be obliged to provide reasonable assistance to the Contractor in defending any legal action, but this should not extend to meeting any costs of the Contractor's defence.

33.4.3  The Authority may contribute Authority Data 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. This will normally require the Authority to provide an indemnity to the Contractor. The Contractor should be obliged to provide reasonable assistance to the Authority in defending any legal action, but this should not extend to meeting any costs of the Authority's defence.