The New Competition Regime For Technology Transfer Agreements

This briefing looks at the key changes to the competition rules applicable to technology transfer agreements which came into effect on 1 May 2014.

Background

Technology transfer agreements are licensing agreements where one party (the licensor) authorises another party (the licensee) to use the licensor's patents, know how or software for the production of goods or services.

The European Commission recognises that intellectual property licensing arrangements are usually pro-competitive and promote innovation, leading to the wider availability of goods and services to the benefit of consumers. For that reason, historically, the parties to licensing arrangements have been able to benefit from a block exemption, which provides an automatic exemption from the prohibition on anti-competitive agreements set out in Article 101 of the Treaty on the Functioning of the European Union.