New Technology Transfer Block Exemption Now In Effect: Stricter Regime

The revised Technology Transfer Block Exemption Regulation (TTBER) and accompanying guidelines entered into force on 1 May 2014. Certain changes impose a stricter regime for common licensing provisions such as grant-back obligations, no-challenge clauses and passive sales restrictions. Companies are advised to reassess their agreements for licensing technology rights to ensure compliance with the revised TTBER.

The TTBER provides a 'safe harbour' for technology agreements that license patents or other technology rights for production, as long as these agreements do not contain any blacklisted provisions, and are entered into between companies with limited market power. An agreement fulfilling the requirements of the TTBER is held to fulfil the requirements of Article 101 (3) TFEU and thus to not infringe the cartel prohibition laid down in Article 101 (1) TFEU. The revised TTBER replaces the prior block exemption regulation for technical transfer agreements that was