Technology Transfer Agreements (TTAs) are legal contracts that allow for the transfer of knowledge, expertise, and intellectual property rights from one party, typically the licensor, to another party, typically the licensee. These agreements are essential for the effective commercialization of new technologies as they allow for the monetization of research and development investments.
However, without proper regulation, TTAs could be used to create monopolies and hinder innovation, which is why the European Union introduced the Technology Transfer Agreements Block Exemption Regulation (TTBER) in 2004.
The TTBER is a framework that allows TTAs to be exempted from certain EU competition rules under certain conditions. For instance, a TTA that meets certain criteria can be automatically considered exempt from the EU’s prohibition on anti-competitive agreements.
To qualify for the exemption, the TTA must satisfy specific conditions regarding the products or services involved, the parties involved, and the licensing terms. For example, the licensor must have the legal right to use and license the intellectual property involved in the agreement.
The TTBER also provides a safe harbor for license agreements that are deemed to be low-risk. These agreements are presumed to be exempted from the EU’s antitrust rules if they do not include any hardcore restrictions such as price-fixing or territory division.
The purpose of the TTBER is to encourage innovation and promote competition by providing a clear and predictable legal framework for TTAs. By doing so, it helps to facilitate the transfer of technology and knowledge and encourages investment into research and development.
The European Commission regularly reviews the TTBER to ensure that it stays up-to-date with the latest developments in technology transfer. The most recent review took place in 2014, and the Commission extended the application of the TTBER until April 30, 2026.
In conclusion, the Technology Transfer Agreements Block Exemption Regulation is an essential regulatory framework that provides legal certainty and promotes competition and innovation in the technology transfer industry. By ensuring that TTAs comply with EU competition law, the TTBER helps to create a level playing field for technology transfer and encourages investment in research and development.