By Simon Zekaria - 4th April 2004
Brussels trustbusters are set to rubber-stamp new laws allowing companies in the EU to share technology with rival firms, as long as they do not control more than 20 per cent of sector markets.
The move on Wednesday by the European Commission sees the final adoption at EU legislative level for so-called ‘technology transfers’, as the competition department aims to complete the regulatory jigsaw puzzle before the EU’s spring enlargement.
Under the laws, automatic clearance for the sharing of innovation is applied below the 20 per cent threshold, while high tech companies who breach the percentage ceiling can also share patented innovation - providing they assuage fears of anti-competitiveness and market monopolisation.
And non-competitors spanning across different industry and technology sectors will be able to share ideas below a market threshold of 30 per cent.
The intellectual property rules proposed by the EU competition watchdog, codified under the ‘Technology Transfer Block Exemption’, are coming into force on May 1 this year when the EU club of 15 member states expands to 25 via Eastern Europe.
The measures were first outlined by the EU executive in 2003.
Whilst the transfer of technology is a common way for companies seeking rapid advancement in markets to share expertise in product manufacture, the commission is concerned that the unchecked transfer of ideas could precipitate a spate of illegal cartels.
EU competition commissioner Mario Monti declared in Paris earlier this year in January that the new guidelines would align Brussels with US regulators who have also set a 20 per cent ceiling for ‘technology transfer’.
“This package will bring about an important convergence between EU and US competition policy towards licensing agreements,” the Italian said.
"What is now on the table is a [..] regulation that will allow companies to do much more than ever before".
The ‘technology transfer’ package is not the only set of EU measures in competition law going through the final phases of adoption.
As part of the three-part wave of change in EU regulatory policy, the commission – the EU’s lawmaker – has already concluded new rules for the European antitrust notifications and complaints system and is in the process of finalising steps for the updated ‘merger regulation’ on business concentrations.
Wednesday’s legislative step will follow the weekly ‘college’ meeting of 20 EU commissioners in Brussels.
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