(a) That the Government of the United States of America, as soon as practicable after receiving notice of any claim by which a liability might fall upon the Government of the United Kingdom under the indemnity, will notify the Government of the United Kingdom of such claim having been made. (b) That, upon being so notified of any such claim, the Government of the United Kingdom will, so far as practicable, dispose of such claim through negotiations with the claimant. (c) That the Government of the United States of America will not enter into negotiations or make any compromise or settlement out of court with any such claimant without the prior knowledge and concurrence of the Government of the United Kingdom. (d) That, in all cases in which no prior disposition or compromise or settlement of a claim shall have been made, as in paragraphs (b) and (c) of this Article, and the claim becomes the subject of legal proceedings in the United States Court of Claims or other appropriate United States court, the Government of the United Kingdom shall, if it so requests, be permitted to assist the Government of the United States of America in defending any such proceedings, and that, in the event that judgment is rendered against the Government of the United States of America, the Government of the United Kingdom will satisfy such judgment for and on behalf of the Government of the United States of America in the manner and within the time prescribed by law, or, if the judgment should be satisfied by payment by the Government of the United States of America, the latter shall be reimbursed by the Government of the United Kingdom in the same amount and the same kind of currency as the Government of the United States of America paid to the United Kingdom national in satisfying such judgment. ARTICLE VIII (a) Subject to the provisions of the Act of the Congress of the United States approved March 11, 1941 (Public 11, 77th Congress), as amended, and the provisions of Article IX of this Agreement, the Government of the United States of America agrees and undertakes to indemnify and save harmless the Government of the United Kingdom against all claims asserted by nationals of the United States of America under any United Kingdom patents or registered designs (including claims for compensation for the use of inventions which are the subject matter of applications for patents or registered designs, and publication of which has been prohibited under the United Kingdom Defence Regulations, provided that the patents shall have been issued or the registrations shall have been effected) for the use of any method or process and for the manufacture, use, or disposition of any article, which method, process, or article was used, manufactured, or disposed of by or for the Government of the United Kingdom (1) for the purposes and to the extent set forth in Article II of this Agreement; or (2) in connection with the supply of articles to the Government of the United States of America under Reciprocal Aid or equivalent procedure, including the manufacture, use, and disposal of articles so supplied; or (3) pursuant to a request made or authority given, for the purposes of the war, by the Government of the United States of America to the Government of the United Kingdom; provided always that the Government of the United Kingdom will, whenever in its judgment practicable, avail itself of any indemnity from a third party of which it shall have the benefit, in lieu of the indemnity from the Government of the United States of America contained in this Agreement. For the purposes of this paragraph (a) claims asserted by nationals of the United States of America under any United States patents against United Kingdom Government contractors or subcontractors shall be construed to be claims subject to indemnification by the Government of the United States of America in cases where the Government of the United Kingdom has agreed and undertaken to indemnify and save harmless such contractors or subcontractors against any liability resulting from the use of any patented invention. (b) The indemnity set forth in paragraph (a) of this Article shall apply whether or not requisitions have been or will be at any time filed by the Government of the United Kingdom under regular Lend-Lease procedure or its then current equivalent in accordance with Article III of this Agreement. ARTICLE IX The indemnity by the Government of the United States of America to the Government of the United Kingdom shall be subject to the following conditions and procedure, namely: (a) That the Government of the United Kingdom, as soon as practicable after receiving notice of any claim by which a liability might fall upon the Government of the United States of America under the indemnity, will notify the Government of the United States of America of such claim having been made. (b) That, upon being so notified of any such claim, the Government of the United States of America will, so far as practicable, dispose of such claim through negotiations with the claimant. (c) That the Government of the United Kingdom will not enter into negotiations nor make any compromise or settlement out of court with any such claimant without the prior knowledge and concurrence of the Government of the United States of America. (d) That, in all cases in which no prior disposition or compromise or settlement of a claim shall have been made, as in paragraphs (b) and (c) of this Article, and the claim becomes the subject of legal proceedings in the appropriate United Kingdom court or other tribunal, the Government of the United States of America shall, if it so requests, be permitted to assist the Government of the United Kingdom in defending any such proceedings, and that, in the event that judgment is rendered against the Government of the United Kingdom, the Government of the United States of America will satisfy such judgment for and on behalf of the Government of the United Kingdom in the manner and within the time prescribed by law, or, if the judgment should be satisfied by payment by the Government of the United Kingdom, the latter shall be reimbursed by the Government of the United States of America in the same amount and the same kind of currency as the Government of the United Kingdom paid to the United States national in satisfying such judgment. (e) That in accordance with the provisions of Section 3(c) of the Act of the Congress of the United States approved March 11, 1941 (Public 11, 77th Congress), as amended, the obligations of the Government of the United States of America under the indemnity shall only extend to claims of which the Government of the United States of America is notified in accordance with paragraph (a) of this Article before July 1, 1949 or such other date as Congress may hereafter enact in amendment of said Section 3(c). ARTICLE X (a) Subject to the following provisions of this Article, the indemnity set forth in Articles VI, VII, VIII, and IX of this Agreement shall inure only to the benefit of the respective Governments. However, each Government agrees and undertakes to indemnify and save harmless the nationals of the other Government whom such Government requests so to be indemnified against all claims asserted by the nationals of the indemnifying Government under any patents or registered designs for the use of any method or process and for the manufacture, use, or disposition of any article, which method, process, or article was used, manufactured, or disposed of to the extent set forth in Article II of this Agreement in the course of manufacture, use, or disposition for the essential war needs of the civilian population of the country of the nationals whom it is sought to indemnify; provided, however, that requests for indemnities under this Article X shall be made only in cases where the formal requisitions for the rights under the patents or registered designs involved shall have been filed with the indemnifying Government on or before April 8, 1946, and provided further that such requests shall be made only in cases where the requesting Government had assured its nationals whom it seeks to have indemnified that they would be saved harmless from liability in respect. of such claims. Nothing in this Article X shall be construed as conferring any rights on any national of either country to assert any claim against the Government of the other country. 308-581-74 -51 (b) The indemnities set forth in this Article X shall be subject to the nationals whom it is sought to indemnify agreeing to comply substantially with the conditions and procedure set forth in Articles VII and IX of this Agreement. It is understood that the limitation set forth in paragraph (e) of Article IX shall apply to the obligation of the Government of the United States of America under this Article X. ARTICLE XI In order to avoid conflict with the understanding contained in this Agreement, departments or agencies of the Government of the United States of America, which negotiate contracts for production in the United States of America, pursuant to specifications furnished by or on behalf of the Government of the United Kingdom, will not require contractors in the United States of America to give indemnities to the Government of the United States of America which would be likely to result in efforts by the contractors to obtain an off-setting indemnity from the Government of the United Kingdom; the Government of the United Kingdom assumes a reciprocal obligation toward the Government of the United States of America. ARTICLE XII Anything contained in this Agreement to the contrary notwithstanding, any obligations heretofore or hereafter undertaken by the Government of the United Kingdom pursuant to the provisions of Section 7 of the Act of the Congress of the United States approved March 11, 1941 (Public 11, 77th Congress), as amended, as such obligations may be interpreted by the President of the United States of America or by a United States court of competent jurisdiction, shall be performed by the Government of the United Kingdom. ARTICLE XIII All payments made by the Government of the United States of America. and the Government of the United Kingdom, respectively, in carrying out the terms of this Agreement shall be accounted for by the appropriate agencies of the two Governments as aid extended and benefits received by the Government of the United States of America in accordance with the Act of the Congress of the United States approved March 11, 1941 (Public 11, 77th Congress), as amended, and the agreement between the two Governments entered into at Washington on February 23, 1942. ARTICLE XIV Each Government will give to the other Government all possible information and other assistance required in connection with computing any payments to be made to nationals of the other Government with respect to the use of their patent rights, information, inventions, designs, or processes. ARTICLE XV A joint committee of representatives of the Government of the United States of America and of the Government of the United Kingdom shall be established for the purpose of dealing with problems arising in connection with operations under this Agreement and of making appropriate recommendations to proper authorities with respect thereto. ARTICLE XVI No patent rights, information, inventions, designs, or processes shall be requested by either Government under this Agreement nor shall the indemnities set forth in Articles VI, VII, VIII, IX, and X of this Agreement apply in respect of any use or infringement occurring during the continuance in effect of a license agreement or other contractual obligation in existence on January 1, 1942 between a national of one Government on the one hand and a national of the other Government on the other hand covering such patent rights, information, inventions, designs, or processes; provided that if such. license agreement or other contractual obligation be nonexclusive, such patent rights, information, inventions, designs, or processes may be requested by either Government under this Agreement in respect of their use or infringement by nationals of the requesting Government other than the national holding such license agreement or other contractual obligation and the indemnities aforesaid shall, if otherwise applicable in accordance with their terms, apply to the same extent. ARTICLE XVII This Agreement shall be deemed to have been in effect and operation as from January 1, 1942, and shall expire on April 8, 1946, but without prejudice to any liability which may then already have been incurred, or which may thereafter arise, pursuant to any obligations undertaken by either Government by virtue of Articles VI, VII, VIII, IX, X, XII, XIII, XIV, and XVI of this Agreement. For these purposes the definitions of the term "nationals" set forth in Article I of this Agreement shall continue in effect after April 8, 1946. DONE, in duplicate, at Washington this twenty-seventh day of March 1946. For the Government of the United States of America: DEAN ACHESON Acting Secretary of State of the United States of America For the Government of the United Kingdom of Great Britain and HALIFAX His Majesty's Ambassador Extraordinary and Plenipotentiary at Washington |