ABSTRACT
Machinery and equipment of the vessel may bear the patent number, trademarks or trade names of the manufacturers. In even the most straightforward of shipbuilding projects, the construction and outfitting of the vessel is likely to involve the use of designs, construction methods and materials over which third parties enjoy patent and other intellectual property rights. In addition to such warranty, the contract will often provide for an express indemnity in favour of the buyer in respect of any claims relating to patent or other intellectual property right infringements which affect the vessel after delivery. The indemnity will frequently extend to a commitment on the part of the builder to provide security to release the vessel if she is arrested following delivery in pursuance of such a claim. The contract will frequently also incorporate a clause stipulating that the builder is to retain title to all plans, drawings and other data relating to the design and construction of the vessel.
