Article 9 Effect of breach of conditions

(1)

Breach of a condition imposed by article 5 (market share and other thresholds) or 7 (hardcore restrictions) has the effect of cancelling the block exemption in respect of the technology transfer agreement concerned, subject to paragraph (2) in the case of a breach of a condition imposed by article 5.

(2)

If at the time the technology transfer agreement is entered into the agreement meets the condition under article 5(2) or (4) (whichever is relevant), but at a subsequent time ceases for any reason to meet whichever of those conditions is then relevant, the breach has the effect of cancelling the block exemption in respect of the technology transfer agreement, but only with effect from the end of the period of three consecutive calendar years following the calendar year in which the condition concerned is first breached.

(3)

Breach of the condition imposed by article 8 (excluded restrictions) has the effect, as regards a technology transfer agreement which contains an excluded restriction—

(a)

which is not severable from the agreement, of cancelling the block exemption in respect of that agreement;

(b)

which is severable from the agreement, of cancelling the block exemption in respect of that excluded restriction only.