The Commission is currently reviewing its competition policy approach towards technology transfer agreements. This article deals with some of the background issues and questions relevant for an appropriate perspective on how to find the right balance when applying competition policy to licensing agreements. It is argued that intellectual property law and competition law do not have conflicting aims. It is also quite evident that intellectual property and intellectual property law may not always stimulate innovation. There are therefore good reasons for competition law to prevent the possible anti-competitive effects of licensing agreements. The high importance of innovation for growth and welfare does not mean that competition policy towards licensing agreements needs to be fundamentally different or less strict, not in general and not for certain sectors. Accordingly the proposed new block exemption regulation and draft guidelines contain an approach similar to the approach applied in recently adopted regulations and guidelines for other types of vertical and horizontal agreements, including the creation of safe harbours with the help of market share thresholds.
World Competition