Depending on the rights and rights of the licensing parties, the legislation most likely to affect an international licensing relationship will be UK and EU competition law, including Article 101 of the Treaty on the Functioning of the European Union (TFUE) and the Class Exemption Regulation for Technology Transfers (TTBER) and its guidelines. The GMO TT limits the use of certain licensing conditions, in particular passive sales restrictions (except in countries with exclusive licenses) and automatic assignments or exclusive licenses for improvements made by a licensee to the licensee. In general, the TFUE looks at anti-competitive behaviour and attempts to regulate relationships between competitors, suppliers and customers. These laws can be used to prevent dominant parties from forcing other parties to indeterminate licences or from manipulating contracts by entering into agreements with anti-competitive royalties or minimum supply requirements for a given supplier. See question 28. In one case last year, the High Court in good faith included certain obligations in a contract for the sale and licensing of toiletries.6 There was an obligation not to underestimate duty-free prices and, knowingly, not to provide false information. The case shows that the courts are prepared to include certain obligations in good faith in a licensing agreement, such as. B: act honestly, cooperate, not arbitrarily exercise contractual discretion and do not act against a well-established acceptance of the industry. The exclusion of non-contest clauses from the scope of the category exemption is that licensees are generally in the best position to determine whether an intellectual property right is void or not. In the interest of undistorted competition and in accordance with the principles underlying intellectual property protection, zero intellectual property rights should be abolished. Invalid intellectual property stifles rather than promotes innovation. As a general rule, this is the duration of an IP licence that ends in accordance with the expiry or invalidity of the right in question.
There are, however, a few nuances that depend on the law in question. If a company grants the right to manufacture and sell products, the licensee receives revenue from that license, but does not take the risk of manufacturing, promoting and selling those products. On the other hand, the licensee has the right to use the IP without the effort and risk of research and product development costs. Many licensing agreements are equipped with technical assistance and technical assistance. The fee can be wrapped in the licence fee or calculated as a separate price point. Service level agreements are often used in technical assistance. Unless the contract sets the interest rate and specifies the amount of receivables, the Late Payment of Commercial Debts (Interest) Act 1998 provides that, in the part transaction agreement, a creditor may claim interest of 8% per year above the Bank of England`s base rate on the price of goods or services , plus a fixed amount and a reasonable cost for debt collection. The application of the legal act to international agreements depends on the choice of the law and the existence of an important link with the United Kingdom.
A trademark may be revoked if it has not been used in the past five years. Fortunately, the use by a licensee is usually the use of a trademark for these purposes.