Comments on the Transfer of Technology Block Exemption (Regulation 240/96) European Commission Evaluation Report

Prepared by Commissions on Competition and on Intellectual Property

The new Block Exemption should preferably contain a licensees’ product market share ceiling of 30% only for restrictions imposed on the licensee outside the scope of the licensed intellectual property right.

The European Commission Transfer Technology Block Exemption (“TTBE”) Evaluation Report (“the Report”) was made publicly available in December 2001. The Commission has invited comments upon the Report.
Whether for licensors or licensees of intellectual property in the EU, the scope of the TTBE is of great importance as it affects the legality and enforceability of licences. Moreover, the TTBE sets the Commission's approach to the relationship between competition law and the protection of intellectualproperty rights.
As stressed in the Report, protection for intellectual property rights and the protection of effective competition should be regarded as complementary, rather than opposed, as innovation in products and technologies is the ultimate source of competition. It is therefore important to find the right balance between protecting competition and protecting intellectual property rights.