(1) Where, at any time after a patent application has been made, the invention concerned is exploited by the Commonwealth or a State (or by a person authorised in writing by the Commonwealth or a State) for the services of the Commonwealth or the State, the exploitation is not an infringement:
(a) if the application is pending--of the nominated person's rights in the invention; or
(b) if a patent has been granted for the invention--of the patent.
(2) A person may be authorised for the purposes of subsection (1):
(a) before or after any act for which the authorisation is given has been done; and
(b) before or after a patent has been granted for the invention; and
(c) even if the person is directly or indirectly authorised by the nominated person or patentee to exploit the invention.
(3) Subject to section 168, an invention is taken for the purposes of this Part to be exploited for services of the Commonwealth or of a State if the exploitation of the invention is necessary for the proper provision of those services within Australia.