Press Release: Commission proposes new safe harbour for the licensing of patents and know how

The European Commission is seeking comments on changes to the competition rules applicable to the licensing of patents, 'know-how' and software copyright. Technology transfer licensing agreements currently benefit from a block exemption (safe harbour) if certain conditions are met. The Commission proposes a number of changes to the block exemption that will reduce the regulatory burden for companies, while ensuring an effective control of agreements between companies holding significant market power. The new approach must be seen in combination with the modernisation of the European Union's enforcement rules for antitrust which will come into force in May 2004.