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News

intellectual property expert

EU Commission Announces Changes to Patent Licensing Rules 25/03/14

On Friday 21st March, the European Commission announced changes to the rules regarding licensing of technological patents.

These new rules have been adopted specifically for the assessment of technology transfer agreements, which allow companies to licence the use of their patents, under EU antitrust rules.

So why have the European Commission made these changes?

The European Commission believes that licensing agreements stimulate competition, spread innovation and strengthen incentives for research and development. However, in certain cases, licensing can also be used to harm competition, which is why these new rules have been designed to preserve a level playing field in the Single Market.

What are the key features of the new rules?

* A regime that reflects licensing as pro-competitive.

* More detailed guidance on ‘patent pools’. These are a way for companies to gain cheaper and easier access to intellectual property rights and are often pro-competitive. The new guidance provides protection from those creating and licensing ‘patent pools’.

* A much tougher approach to clauses that could harm competition and innovation. Previously, certain clauses could be automatically exempt from antitrust rules. However, this will no longer be the case; cases will be determined on a case-by-case basis.

* Guidance will now be provided on settlement agreements.

More information on the new rules can be found on the European Commission’s website.

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