37Transfer of intellectual property rights

37 Transfer of intellectual property rights

(1) A large grocery business must not directly or indirectly require a supplier to transfer or exclusively license any intellectual property right held by the supplier in relation to a grocery product as a condition or term of supply of an equivalent own brand product of the large grocery business (as the case may be).

Civil penalty:

(a) for a contravention by a body corporate—3,200 penalty units; or
(b) for a contravention by a person who is not a body corporate—640 penalty units.

(2) Subsection (1) does not prevent the large grocery business from: (a) holding an intellectual property right in an own brand product of the large grocery business; or (b) having an exclusive right to the retail sale of an own brand product of the large grocery business; or (c) making the holding of a right covered by paragraph (a) or (b) by the large grocery business a condition or term of supply by the supplier of an own brand product of the large grocery business, to the extent the product, recipe or formulation of the product: (i) was developed or formulated by or for the large grocery business; or (ii) is customised by or for the large grocery business.