New rules for technology transfer agreements

In general, the European Commission acknowledges the pro-competitive nature of such agreements, which stimulate research and innovation. Nevertheless, under certain circumstances, these agreements may restrict market competition through market sharing or the exclusion of competing technologies, in which case they are prohibited in consequence of article 101 of the Treaty on the Functioning of the European Union (the «Treaty»). In this regard, the new regime shares the philosophy of the old regime: the Regulation provides a safe harbour from the prohibition of article 101 to technology transfer agreements between companies with low market power which satisfy the conditions set out therein, whereas the accompanying Guidelines set out the criteria to be followed in the competition analysis of non-exempt agreements whilst providing direction on the implementation of the Regulation…