(1) If:
(a) a person is authorised by or under a law of the Commonwealth or of a State or Territory to do an act referred to in a paragraph of section 11 in relation to propagating material of a plant variety; and
(b) the act is one which (apart from this provision) would require authorisation from the grantee of PBR in the plant variety, or an exclusive licensee of the grantee; and
(c) before the person does the act, the person either pays equitable remuneration to the grantee, or an exclusive licensee of the grantee, in respect of the act or arranges for the payment of such remuneration; and
(d) the person does the act;
then neither the grantee, nor any exclusive licensee of the grantee, nor any other person authorised by the grantee or exclusive licensee, is entitled to exercise PBR in the plant variety against the person in respect of that act.
(2) To avoid doubt, subsection (1) does not limit the operation of section 17 in relation to the conditioning or reproduction of propagating material in the circumstances referred to in that section.
(3) In this section:
"equitable remuneration" , in relation to an act done in relation to propagating material of a plant variety, means an amount:
(a) that is agreed between the person proposing to undertake the act and the grantee of PBR in the plant variety, or an exclusive licensee of the grantee; or
(b) if agreement cannot be reached under paragraph (a)--determined by a court of competent jurisdiction to constitute equitable remuneration in relation to the act.