Intellectual Property Rights and Technology Transfer – Need for right Approach © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership :

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Presentation transcript:

Intellectual Property Rights and Technology Transfer – Need for right Approach © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

(1)The technology based industry challenges and solutions (2) Technology Transfer (revised) EU Competition Law Regime 2 AGENDA © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

(1) The technology based industry - challenges and solutions 3 CHALLENGES Dynamic markets Speed of techno- logical progress Increasing competitive pressure Globalisation © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

4 SOLUTIONS Share costs Cross fertilisa- tion of ideas & experiments Production cooperation - specialisation - outsourcing - subcontracting Technology transfers R&D cooperation Pool know-how Share risks Launch innovation faster (1) The technology based industry - challenges and solutions © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

Intellectual property licensing flow chart 5 R&D Results / technology IPRs - patents - utility models - designs - software Technology licensing Production of contract products © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’ A. Technology Transfer - General (2) Technology Transfer – (revised) EU Competition Law Regime

Permission granted by the owner of the intellectual property right to another to use it On agreed terms and conditions: Defined purpose Defined territory Agreed period of time Licensing out / Licensing in 6 A. Technology Transfer - General (2) Technology Transfer – (revised) EU Competition Law Regime © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

 Opportunities : substantial economic benefits Share risks Save costs Pool know-how Launch innovation faster  Threats : anti-competitive effects Price fixing Output limitation Sharing of markets Sharing of customers Innovation (quality, variety) limitation 7 (3) Technology Transfer – (revised) EU Competition Law Regime A. Technology Transfer - General © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

Article 101(1) TFEU (prohibition) Prohibits agreements that appreciably prevent, restrict or distort competition within the EEA void – not enforceable agreement (art. 101(2) TFEU) fines up to 10 % worldwide turnover 8 a contracting party’s possibility to exploit its own technology e.g. an agreement limitingand/or to effectuate independent R&D B. Article 101 TFEU (3) Technology Transfer – (revised) EU Competition Law Regime © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

Article 101(3) TFEU (exemption)  Exempted provided 4 cumulative conditions are met: improving production/distribution or promoting technical or economic progress ‘fair share’ for consumers indispensable to attain the objectives no possibility to eliminate competition in respect of a substantial part of the products in question technical or economic benefits > limitations on competition 9 (3) Technology Transfer – (revised) EU Competition Law Regime B. Article 101 TFEU © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

 Art. 101(3) TFEU (exemption) 10 Self assessment – Helping means : De minimis notice (2001) – no competition distortion if market share does not exceed : 10% (joint / competitors) 15% (each / non-competitors) Guidelines on “the effect on inter-state trade” (2004) “Safe Harbours” (Reg. 774/2004 TTBER, expired on 30 April 2014 / Reg. 316/2014 entered into force on May 1 st 2014) TTBER Guidelines (2014) Presumption for agreements exempted by categories Other : ad hoc assessment of art. 101(3) TFEU (3) Technology Transfer – (revised) EU Competition Law Regime B. Article 101 TFEU © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

11  Safe harbour nr. 1 : - 4 or more technology substitutes or; below de minimis or no noticeable influence on interstate trade - no hardcore restriction  Safe harbour nr. 2 : - under TTBER market share threshold, and - no hardcore restriction  Individual assessment : - the market position of the parties, competitors and purchasers (market power) - market access thresholds - maturity of the market - other factors (e.g. length of the agreement, regulatory frame, etc.) Presumption: not caught by 101(1) TFEU 101(1) TFEU - TTBER exemption 101(1) TFEU – not covered by TTBER – 101(3) TFEU Safe harbour nr. 1Safe harbour nr. 2 Individual assessment B. Article 101 TFEU - Assessment Summary (3) Technology Transfer – (revised) EU Competition Law Regime © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’

Contact details : 12 Yves Van Couter : Loyens & Loeff Woluwe Atrium Neerveldstraat Sint-Lambrechts-Woluwe (Brussels) Belgium Tel. : Fax : © Yves Van Couter – 2014, November 21 ‘EU-India Strategic Partnership : Beyond the Lost Decade’