Commission Consults On Proposal For Revised Competition Regime For Technology Transfer Agreements

The European Commission invites comments on a proposal for new competition rules for the assessment of technology transfer agreements, through which a licensor permits a licensee to exploit patents, know-how or software for the production of goods and services. The proposal aims to update the current regime in order to strengthen incentives for research and innovation, facilitate the diffusion of intellectual property and stimulate competition. In light of stakeholders' submissions, the Commission will adopt a new regime before April 2014.

Licensing is vital for economic development and consumer welfare as it helps to disseminate innovation and allows companies to integrate and use complementary technologies. However, licensing agreements can also have a stifling effect on competition. For instance, two competitors could use a licence agreement to divide markets between them or an important licensor could exclude competing technologies from the market through