(1) Section 141 of the Principal Act is amended -

(a) in subsection (5)(c) by inserting the following after "1996":

"and the specified income is income from a qualifying patent in respect of an invention which was patented for bona fide commercial reasons and not primarily for the purpose of avoiding liability to taxation",

and

(b) by inserting the following after subsection (5):

"(5A)

(a) In this subsection -

'arrangement' means any arrangement, agreement, understanding, promise or undertaking whether express or implied;

'relevant income' means income to which paragraph (b) of the definition of 'income from a qualifying patent' in section 234 applies;

'the amount of aggregate expenditure on research and development incurred by a company in relation to an accounting period', 'the amount of the expenditure on research and development activities', and 'research and development activities' have the same meanings as they have in subsection (5)(a);

'payment in respect of the use of intellectual property' means any payment made, directly or indirectly, in respect of -

(i) any franchise, trade mark, registered design, design right, invention or domain name,