CMA proposes post-Brexit licensing order to replace EU tech framework - London Business News | Londonlovesbusiness.com
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CMA proposes post-Brexit licensing order to replace EU tech framework - London Business News | Londonlovesbusiness.com
"Officials warned during the review that allowing the EU measure to lapse would leave businesses exposed to uncertainty in licensing. Respondents to the consultation echoed that concern, saying the absence of a replacement risked discouraging innovation and weakening incentives to invest in new technology. Licensing rules govern the conditions under which companies use third-party software and modules. Engines, databases, and payment systems are licensed under contracts that must stand up to regulatory scrutiny."
"The CMA proposal outlines what qualifies as technology rights under the new order. Patents, databases, copyright, and software all fall within the scope. It also clarifies what licensing contracts should not contain, including clauses that block new entrants, enforce territorial exclusivity, or impose restrictive royalty structures. By setting out these limits, the CMA aims to ensure agreements protect competition rather than entrench dominant positions."
The Competition and Markets Authority recommends replacing the assimilated EU Technology Transfer Block Exemption Regulation with a new 12-year exemption ahead of the April 2026 expiry. Officials warned that letting the EU measure lapse would create licensing uncertainty and could discourage innovation and investment. The proposal defines technology rights to include patents, databases, copyright and software, and lists prohibited contract clauses such as barriers to new entrants, territorial exclusivity, and restrictive royalty structures. The framework distinguishes active from passive sales and allows the CMA to withdraw exemption status from individual agreements that restrict competition.
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