My Lords, Amendments 3 and 9 address the transitional provisions associated with the changes to ownership of designs, as set out in Clauses 2 and 6.
I will first turn to Amendment 3, which seeks to amend Clause 2 on ownership of unregistered designs. The clause as drafted changes the default ownership requirement for commissioned designs from the commissioner to the designer, as the noble Lord, Lord
Howarth, emphasised. The clause does not apply retrospectively, and designs created before commencement are therefore not caught by the change in the law.
In addition, an exception is made for designs created after the commencement date but under a contract that was entered into before the date of commencement. This recognises that certain enabling contracts would have been entered into before the change in the law and reflects the legal conditions in existence at the time. The Government believe that these exceptions will protect existing contracts and provide businesses currently entering into contracts with adequate time to adjust to the law.
The Government also recognise that this change is significant for the design industry and that raising awareness will be important. I hope to reassure the noble Lord, Lord Young, and all noble Lords on this matter that the Government will therefore work with stakeholders to ensure that they are aware of the change before the law comes into force. The Government will ensure that there is sufficient time to educate businesses before the commencement of this clause.
Amendment 9 proposes similar transitional arrangements in respect of Clause 6, relating to ownership of registered designs. The Bill includes provisions in Clause 22 that are broad enough to permit appropriate transitional arrangements to be put in place as and when the relevant parts of the Bill are enacted. These can be used in relation to Clause 6, and the Government therefore believe that this amendment is not necessary.
The noble Lord, Lord Howarth, or perhaps it was the noble Lord, Lord Young, asked what progress was being made in educating business. My officials have been working with stakeholders such as design and legal representatives for some time. We will continue to work through them as we take the Bill forward.
The noble Lord, Lord Howarth, raised an important point about how one might protect the commissioner, as opposed to the default position of the designer. In response to the issue of whether the commissioner should own the rights automatically, we believe that ownership should be a matter of contract. The noble Lord is correct. It is a matter that businesses should decide upon as they commission designs.
As to the matter raised by the noble Lord, Lord Howarth, regarding the commissioner being a sole trader, perhaps he could clarify his point.