Technology Licensing – Planning the Perfect Marriage!

A new EU technology transfer and licensing regime is due to come into force in May 2004 and will impact on anyone licensing technology in or out, including software. Current arrangements will also need to be reviewed as existing agreements will be required to be compliant by 31 March 2006.

The Commission's expressed intent is to simplify the regime, introduce an "economics based approach" and to bring the EU approach further in line with the approach in the United States. Concerns have however been expressed from many that what has been proposed may provide greater uncertainty and severely hinder the market for technology transfer and therefore innovation.

In the European Commissioner for Competition Policy's speech on 16 January 2004 he countered the apparent outdated thinking that the marriage of "the innovation bride and the competition groom … will unavoidably lead to divorce because of conflicting aims of IPR law and competition law". He stated that "competition is a necessary