The Gazette 1976

GAZETTE

March 1976

European Case

Freedom to provide services.

Robert Coenen, of Netherlands nationality, having

resided in the Netherlands until 9 September 1973 but

residing since that date in Belgium, works as an insur-

ance broker, both on his own account and in the name

of two insurance companies established in the Nether-

lands and actually managed by him in his capacity as

salaried director.

According to Netherlands law on insurance broking

the exercise of this occupation is subject to entry in a

only be effected where it is shown that the applicant

has

a fixed abode in the country.

Having ascertained that Mr. Coenen was resident in

Belgium, the Sociaal Economische Raad notified the

latter that his name would be removed from the register

and notified the two insurance companies managed by

Mr. Coenen that their registration also would have to

be cancelled by reason of Mr. Coenen's place of resi-

dence.

An action was brought against this decision before the

College van Beroep voor het Bedrijfsleven, which re-

ferred to the Court of Justice the question whether the

provisions of the Treaty establishing the European

Economic Community, in particular Articles 59 and

fiO, must be understood as meaning that a requirement

such as that contained in the law on insurance broking,

according to which a natural person who wishes to act

as broker within the meaning of that law must reside

in the Netherlands, is not compatible with those provi-

sions. The Court of Justice, interpreting the spirit of the

Treaty in the matter of freedom to provide services

within the Community, has ruled that the requirement

that the provider of a service must be permanently resi-

dent within the territory of the State where the service is

to be provided may, according to the circumstances, ren-

der Article 59 nugatory, since the precise object of that

article is to eliminate restrictions on freedom to provide

services on the part of persons who do not reside in the

State on the territory of which those services are to be

provided. In the present case, the additional requirement

that the provider of the service be personally resident

within the territory of the Netherlands appears to be a

restriction on the freedom to provide services which is

incompatible with the provisions of the Treaty.

The Court has ruled that the provisions of the EEC

'Treaty, in particular Articles 50, 60 and 65, must be

interpreted as meaning that national legislation cannot,

by requiring residence within the territory of that State,

render it impossible for persons residing in another

Member State to provide services where less restrictive

measures (than the requirement of permanent residence)

would make it possible to ensure that the rules of

conduct to which the provision of such services is sub-

ject on that territory were observed.

Case 39/75 — Coenen v. Sociaal Economische Raad —

(26.11.75) —• Preliminary ruling.

(continued from page 30)

International Law was held in September 1975 at which

examination was begun of a preliminary draft Conven-

tion on Contractual and Non-contractual Obligations in

the light of comments and observations submitted by

the Danish, German and Irish delegations. This exam-

ination will be continued at the next meeting of the

Committee in December.

European Community Patent Convention

17.17. A Conference attended by the nine Member

States and the Commission to finalise a European

Community Patent Convention opened in Luxembourg

on 17 November 1975. The Convention which is ex-

pected to be signed at the conclusion of the Conference

on 15 December 1975 follows on the European Patent

Convention, concluded by sixteen countries including

EEC member States at Munich in 1973, and represents

a second step in the development of an EEC patent

system, creating as it does a unitary system of law for

European patents granted for the EEC countries. The

system will co-exist with national patent systems. The

draft Convention contains a provision which gives

applicants the right, for a transitional period, to decide

between a European patent for one or more EEC

States and a full Community patent. The Commission,

in an opinion issued on 26 September 1975, expressed

opposition to proposals to defer the operation of the

"economic clauses" dealing with "exhaustion of rights"

attached to patents. On 30 November 1975 it was not

clear whether the operation of the "economic clauses"

would be deferred or not.

The Combined Liabilities Scheme

devised and administered by

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for Members of the Incorporated

Law Society of Ireland

is now firmly established with six

years continuity of cover built on

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