Section 357GCZC | R&D undertaken or contracted out by another party to CSA ^F1F2

(1)Subsection (2) applies if—

(a)a company is a party to a cost-sharing arrangement, and

(b)another party to the arrangement (“P”) undertakes research and development for the purpose of creating or developing the invention.

(2)The research and development is to be treated for the purposes of sections 357BLC and 357BLD as having been contracted out by the company to P.

(3)Subsection (4) applies if—

(a)a company is a party to a cost-sharing arrangement,

(b)another party to the arrangement (“P”) contracts out to another person (“A”) research and development for the purpose of creating or developing the invention, and

(c)the company makes a payment under the arrangement in respect of that research and development (whether to P or to A).

(4)For the purposes of sections 357BLC and 357BLD—

(a)the company is to be treated as having contracted out to P research and development which is the same as that contracted out by P to A, and

(b)the payment mentioned in subsection (3)(c) is to be treated as if it were a payment made to P in respect of the research and development the company is treated as having contracted out to P.

(5)In this section “research and development” has the meaning given by section 1138.