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3(1)Any dispute as to the exercise by a Government department or a person authorised by a Government department of the powers conferred by paragraph 1 of this Schedule, or as to terms for the use of a design for the services of the Crown thereunder, or as to the right of any person to receive any part of a payment made in pursuance of sub-paragraph (3) of that paragraph, may be referred to the court by either party to the dispute in such manner as may be prescribed by rules of court.
(2)In any proceedings under this paragraph to which a Government department are a party, the department may—
(a)if the registered proprietor is a party to the proceedings, apply for cancellation of the registration of the design upon any ground upon which the registration of a design may be cancelled on an application to the court under section twenty of this Act;
(b)in any case, put in issue the validity of the registration of the design without applying for its cancellation.
(3)If in such, proceedings as aforesaid any question arises whether a design has been recorded or applied as mentioned in paragraph 1 of this Schedule, and the disclosure of any document recording the design, or of any evidence of the application thereof, would in the opinion of the department be prejudicial to the public interest, the disclosure may be made confidentially to counsel for the other party or to an independent expert mutually agreed upon.
(4)In determining under this paragraph any dispute between a Government department and any person as to terms for the use of a design for the services of the Crown, the court shall have regard to any benefit or compensation which that person or any person from whom he derives title may have received, or may be entitled to receive, directly or indirectly from any Government department in respect of the design in question.
(5)In any proceedings under this paragraph the court may at any time order the whole proceedings or any question or issue of fact arising therein to be referred to a special or official referee or an arbitrator on such terms as the court may direct; and references to the .court in the foregoing provisions of this paragraph shall be construed accordingly.
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