GAZETTE
January-February 1976
which have no effect on trade between EEC Member
States are not subject to the Treaty. Licences limited to
only the use or the manufacture or the sale of the
patented product, or to a specified field of use (pro-
vided it is objectively real and so causes specialisation
rather than market sharing) and licences to manufac-
ture only in a given Member State, would normally be
valid. Clauses requiring payment of royalties, including
minimum royalties, are of course valid unless they out-
last the life of the patent or, in the case of differential
royalties, are disguised export restrictions. Limits on
the duration of a licence, if shorter than or equal to the
life of the patents, are permissable. Clauses prohibiting
sub-licensing or assignment, or requiring minimum pro-
duction levels or necessary quality standards, or requir-
ing goods to be marked, do not restrict competition. If
proper quality can only be ensured if the licensee uses
the patentee's raw materials or components, a "tying"
clause binding him to do so is legitimate. Secrecy
obligations, arbitration clauses and most-favoured-
licensee clauses are valid, and so are clauses requiring
the parties to grant new technology to one another,
provided they are reciprocal and non-exclusive. These
remarks relate to simple patent licences: it is difficult
to make general statements about patent pools, cross-
licensing, joint ventures and agreements for future
patents.
In several recent decisions the Commission has made
it clear that sole or exclusive licences, in which the
patentee binds himself not to grant any other licences
and not to use the technology himself, fall within Art.
85 if trade between Member States is affected. They
should therefore be notified to the EEC Commission.
This is because the licence restricts the freedom of the
patentee to exploit his invention, and deprives all other
potential licensees of access to the technology. However,
if it is really "indispensable" that the licence is ex-
clusive, it would normally be approved by the Com-
mission under Art. 85 (3), EEC Treaty.
Clauses remaining in force longer than the life of the
patent or the knowhow normally restrict competition,
and are illegal unless approved. So are prohibitions on
dealing in competing products, and clauses requiring
the licensee to include specified conditions in his con-
tracts with buyers. Exclusive or non-reciprocal grant-
back obligations, and clauses requiring royalties to be
paid on goods not made by the process or not incor-
porating the knowhow or invention licensed, are nor-
mally illegal. Contractual territorial restrictions on direct
sales, and clauses preventing the licensee from contest-
ing the validity of patents licensed, would require
strong justification to obtain exemption. Quantity re-
strictions are normally not permitted. Neither are re-
strictions on the exact place of manufacture or on the
way the licensee may sell (e.g. in bulk, wholesale or
only to certain customers). If the licensee is given
a veto on the granting of further licences, the licence
would be treated as a sole or exclusive licence.
Any clause which would otherwise be illegal may
nevertheless be approved by the Commission under
Art. 85 (3) provided that it improves production or
distribution or promotes technical or economic progress,
while giving consumers a fair share of the benefit. Also
the restriction on competition must be no more than is
indispensable to obtain the benefit, and competition in
respect of a substantial part of the products involved
must not be eliminated or capable of being eliminated
by the parties.
COURSES IN EUROPEAN LAW
EUOROPA INSTITUTE — UNIVERSITY OF
AMSTERDAM
Courses in European Integration
A General Course, as well as a Specialised Follow-Up
Course, in the Legal Aspects of European Integration
will be held in the Europa Institute of the University
of Amsterdam, 508 Herengracht, Amsterdam, from
16th to 27th August, 1976. The course will be in
English, and the Tuition Fee is 750 Dutch Guilders
(about £150 at current exchange rate). The lecturers
for the General Course are the authors of
Leading
cases and materials on the Law of the European
Communities,
Drs. Volker, Schermers, Winter and
Gijlstra. The Specialist Follow-Up Course which is
separate from the General Course, will comprise lec-
tures on the Judicial Remedies by Dr. Schermers, The
Relationship between National Law and Community
Law by Professor Baardman, Company Law and the
Right of Establishment by Professor Schrans and
Industrial property by Professor Van Gerven. Of the
total fee of £150, £25 must be paid before 15th July
and is not refundable. The balance may be paid on
registration. Participants are expected to arrange their
own accommodation. Application Forms are available
from the Netherlands Universities Foundation for
International Co-operation (NUFFIC), 27 Molenstraat,
The Hague, Netherlands, and should be returned
before 1st July, 1976.
BRUSSELS UNIVERSITY
Course in European Law
Under the auspices of the Wiener-Ansbach Founda-
tion, a Course entitled "Introduction to Civil Law and
to the Law of the European Communities" will be
held in the Faculty of Law of the Free University of
Brussels, 39 Avenue F. D. Roosevelt, Brussels 1050,
from July 26 to August 27, 1976. The term "Civil
Law" includes Commercial Law, Law of Contract,
Civil and Administrative Procedure, and even Crimi-
nal Law. The term "Law of the European Com-
munities" includes Community Institutions, The
Sources and Applicability of Community Law, Com-
petition, Establishment, Social Law, Tax Law, and the
Law of the Environment. As the course will be given
in French, by eminent Belgian and French professors,
it is essential for applicants to have a sufficient know-
ledge of French to follow a lecture and to participate
in a discussion. The Foundation has appointed various
Professors in Britain and Ireland to screen applica-
tions in the first instance. National University
graduates should first get in touch with Professor Niall
Osborough, Dean of the Faculty of Law, University
College, Belfield, Dublin 4, enclosing a relevant Cur-
riculum Vitae. Graduates of the University of Dublin
should get in touch with Professor Mary Robinson,
Faculty of Law, Trinity College, Dublin 2. A number
of scholarships amounting on an average to £275 to
cover fees, fares and maintenance expenses will be
awarded. The admission fee to the course is £25
(2,000 Belgian Francs) and the latest date for receipt
of applications in Brussels is 15th April, 1976.
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