European Commission's proposal for a revised transfer of technology block exemption regulation (TTBER) and accompanying guidelines: ICC comments

In the area of licensing, it is essential that the two policies work together to encourage the dissemination of technology, which is of critical importance for growth. Competition law should therefore encourage pro-competitive licensing.

Unjustified regulatory constraints on the transfer of technology are likely to result in a sub-optimal level of consumer welfare, an inefficient allocation of resources and stifled innovation. These factors are particularly important, given the nature of technology licensing in the international competitive marketplace.

In view of the importance placed on innovation in the European Union’s strategy to become one of the most dynamic economic regions in the world, it is essential that the competition framework in the EU takes the above considerations into account.

In doing so, it should adopt a sympathetic view of the dynamic efficiencies associated with the licensing of intellectual property, and recognize business requirements to integrate complementary intellectual property and to avoid costly infringement litigation. This is especially true in view of the ongoing reforms to "modernise" and decentralize the application of EC competition law.