Section 176 | Meaning of “know-how” etc

(1)In this Chapter “know-how” means any industrial information or techniques likely to assist in—

(a)manufacturing or processing goods or materials,

(b)working a source of mineral deposits (including searching for, discovering or testing mineral deposits or obtaining access to them), or

(c)carrying out any agricultural, forestry or fishing operations.

(2)For this purpose—

“mineral deposits” includes any natural deposits capable of being lifted or extracted from the earth and for this purpose geothermal energy is treated as a natural deposit, and

“source of mineral deposits” includes a mine, an oil well and a source of geothermal energy.

(3)For the purposes of this Chapter any consideration received for giving, or wholly or partly fulfilling, an undertaking which—

(a)is given in connection with a disposal of know-how, and

(b)restricts, or is designed to restrict, any person's activities in any way,

is treated as consideration received for the disposal of the know-how.

(4)It does not matter whether or not the undertaking is legally enforceable.

(5)For the purposes of this Chapter references to a sale of know-how include an exchange of know-how and any provision of this Chapter referring to a sale has effect with the necessary modifications.

(6)Those modifications include, in particular, reading references to the proceeds of sale and to the price as including the consideration for the exchange.