The new technology transfer block exemption

The existing technology transfer block exemption (TTBE) is to expire on 30 April 2014, having entered into force 10 years previously. It will be replaced by a new regulation, the period of consultation for which ended on 17 May 2013. The new draft TTBE should be read together with the new draft guidelines on the application of Article 101 of the Treaty on the Functioning of the European Union to Technology Transfer agreements, which will replace the existing guidelines (2004/C 101/02).

Article 101(1) prohibits agreements that have as their object or effect the restriction or distortion of competition. As an exception, Article 101(3) provides that the prohibition contained in Article 101(1) may be declared inapplicable in the circumstances there described.

Categories of technology transfer agreements that fulfil the conditions set out in the TTBE are ‘block exempted’ from the prohibition contained in Article 101(1) and are thus legally valid and enforceable…

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