Article 3 Block exemption

(1)

The category of agreements identified in paragraph (2) as technology transfer agreements is specified for the purposes of section 6 of the Competition Act 1998^f1 (and accordingly a block exemption^f2 applies in respect of technology transfer agreements).

(2)

Technology transfer agreements are agreements entered into between two undertakings to the extent they provide for—

(a)

technology rights to be licensed for the purpose of the production of particular products by the licensee or a sub-contractor of the licensee, or

(b)

technology rights to be assigned for the purpose of the production of particular products by the assignee in such a way that part of the risk associated with the exploitation of the technology rights remains with the assignor,

but also to the extent they include further provision (if any) of the kind in paragraph (3).

(3)

The provision in this paragraph is provision for—

(a)

the purchase of products by the licensee, or

(b)

any licensing or assignment of intellectual property rights or know-how that does not fall within paragraph (2)(a) or (b),

but only to the extent that the provision is directly related to the production or sale of the contract products.

(4)

Subject to paragraph (5), the block exemption has effect in relation to a technology transfer agreement for as long as at least one of the licensed technology rights—

(a)

has not expired, lapsed or been declared invalid, or

(b)

in the case of know-how, remains secret.

(5)

Where know-how which is a licensed technology right ceases to be secret as a result of any act or omission by the licensee, the exemption applies for the duration of the agreement.

(6)

This Order does not apply to licensing arrangements—

(a)

in research and development agreements which fall within the scope of the Competition Act 1998 (Research and Development Agreements Block Exemption) Order 2022^f3, or

(b)

in specialisation agreements which fall within the scope of the Competition Act 1998 (Specialisation Agreements Block Exemption) Order 2022^f4.

Annotations

Footnotes

f1: Agreements which fall within a category specified for the purposes of section 6 are exempt from the Chapter I prohibition. See section 6(3) of the Act.
f2: For the meaning of “block exemption”, see section 6(4) of the Act.
f3: S.I. 2022/1271, amended by S.I. 2023/1143 and S.I. 2025/163.
f4: S.I. 2022/1272.