European Union: Revised Technology Transfer Block Exemption Regulation ceases to apply

On 30 April 2038, the applicability of the revised Technology Transfer Block Exemption Regulation (TTBER) will expire. The Regulation replaced the previous regulatory framework for technology licensing. It exempts certain categories of technology transfer agreements from the prohibition of anti-competitive agreements under Article 101 of the Treaty on the Functioning of the European Union (TFEU). The exemption applies to licensing agreements for technology rights, including patents, software copyrights, and know-how, provided the market share of competing undertakings does not exceed 20%, or 30% for non-competing undertakings. The Regulation defines hardcore restrictions that disqualify an agreement from the exemption, such as price-fixing, output limitations, and certain market allocations. Furthermore, it clarifies that the Commission or national competition authorities may withdraw the benefit of the exemption if an agreement is found to have effects incompatible with the internal market, such as restricting third-party access to technologies.