By Simon Zekaria - 16th January 2004
Companies in the European Union will be able to share technology with rival firms as long as they do not control more than 20 per cent of sector markets, said EU competition chief Mario Monti on Friday.
And high tech companies who breach the percentage ceiling can also share patented innovation - providing they assuage fears of EU trustbusters over anti-competitiveness and market monopolisation after Brussels' inquiries, said Monti in a speech from Paris.
“Above the market share thresholds there is no presumption of illegality,” said the Italian commissioner.
“We have made this crystal clear in the regulation and guidelines”.
In addition, 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, under the so-called ‘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 last year.
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.
And Monti noted 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,” Monti said.
"What is now on the table is a [..] regulation that will allow companies to do much more than ever before".
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