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1、COMMISSIONNOTICEGuidelinesontheapplicationofArticle81oftheECTreatytotechnologytransferagreements(2004C10102)(TextwithEEArelevance)I.INTRODUCTION1.Theseguidelinessetouttheprinciplesftheassessmentoftechnologytransferagreem

2、entsunderArticle81oftheTreaty.TechnologytransferagreementsconcernthelicensingoftechnologywherethelicenspermitsthelicenseetoexploitthelicensedtechnologyftheproductionofgoodsservicesasdefinedinArticle1(1)(b)ofCommissionReg

3、ulation(EC)No7732004ontheapplicationofArticle81(3)oftheTreatytocategiesoftechnologytransferagreements(theTTBER)(1).2.ThepurposeoftheguidelinesistoprovideguidanceontheapplicationoftheTTBERaswellasontheapplicationofArticle

4、81totechnologytransferagreementsthatfalloutsidethescopeoftheTTBER.TheTTBERtheguidelinesarewithoutprejudicetothepossibleparallelapplicationofArticle82oftheTreatytolicensingagreements(2).3.Thestardssetfthintheseguidelinesm

5、ustbeappliedinlightofthecircumstancesspecifictoeachcase.Thisexcludesamechanicalapplication.Eachcasemustbeassessedonitsownfactstheguidelinesmustbeappliedreasonablyflexibly.Examplesgivenserveasillustrationsonlyarenotintend

6、edtobeexhaustive.TheCommissionwillkeepunderreviewthefunctioningoftheTTBERtheguidelinesinthenewenfcementsystemcreatedbyRegulation12003(3)toconsiderwhetherchangesneedtobemade.4.Thepresentguidelinesarewithoutprejudicetothei

7、nterpretationofArticle81theTTBERthatmaybegivenbytheCourtofJusticetheCourtofFirstInstance.II.GENERALPRINCIPLES1.Article81intellectualpropertyrights5.TheaimofArticle81asawholeistoprotectcompetitiononthemarketwithaviewtopro

8、motingconsumerwelfareanefficientallocationofresources.Article81(1)prohibitsallagreementsconcertedpracticesbetweenundertakingsdecisionsbyassociationsofundertakings(4)whichmayaffecttradebetweenMemberStates(5)whichhaveasthe

9、irobjecteffectthepreventionrestrictiondisttionofcompetition(6).AsanexceptiontothisruleArticle81(3)providesthattheprohibitioncontainedinArticle81(1)maybedeclaredinapplicableinthecaseofagreementsbetweenundertakingswhichcon

10、tributetoimprovingtheproductiondistributionofproductstopromotingtechnicaleconomicprogresswhileallowingconsumersafairshareoftheresultingbenefitswhichdonotimposerestrictionswhicharenotindispensabletotheattainmentoftheseobj

11、ectivesdonotaffdsuchundertakingsthepossibilityofeliminatingcompetitioninrespectofasubstantialpartoftheproductsconcerned.6.Intellectualpropertylawsconferexclusiverightsonholdersofpatentscopyrightdesignrightstrademarksothe

12、rlegallyprotectedrights.Theownerofintellectualpropertyisentitledunderintellectualpropertylawstopreventunauthiseduseofhisintellectualpropertytoexploititinteraliabylicensingittothirdparties.Onceaproductincpatinganintellect

13、ualpropertyrighthasbeenputonthemarketinsidetheEEAbytheholderwithhisconsenttheintellectualpropertyrightisexhaustedinthesensethattheholdercannolongeruseittocontrolthesaleoftheproduct(7)(principleofCommunityexhaustion).Ther

14、ightholderhasnorightunderintellectualpropertylawstopreventsalesbylicenseesbuyersofsuchproductsincpatingthelicensedtechnology(8).TheprincipleofCommunityexhaustionisinlinewiththeessentialfunctionofintellectualpropertyright

15、swhichistogranttheholdertherighttoexcludeothersfromexploitinghisintellectualpropertywithouthisconsent.7.Thefactthatintellectualpropertylawsgrantexclusiverightsofexploitationdoesnotimplythatintellectualpropertyrightsareim

16、munefromcompetitionlawintervention.Articles8182areinparticularapplicabletoagreementswherebytheholderlicensesanotherundertakingtoexploithisintellectualpropertyrights(9).Ndoesitimplythatthereisaninherentconflictbetweeninte

17、llectualpropertyrightstheCommunitycompetitionrules.Indeedbothbodiesoflawsharethesamebasicobjectiveofpromotingconsumerwelfareanefficientallocationofresources.Innovationconstitutesanessentialdynamiccomponentofanopencompeti

18、tivemarketeconomy.Intellectualpropertyrightspromotedynamiccompetitionbyencouragingundertakingstoinvestindevelopingnewimprovedproductsprocesses.Sodoescompetitionbyputtingpressureonundertakingstoinnovate.Therefebothintelle

19、ctualpropertyrightscompetitionarenecessarytopromoteinnovationensureacompetitiveexploitationthereof.ENC1012OfficialJournaloftheEuropeanUnion27.4.2004Claimsthatintheabsenceofarestraintthesupplierwouldhaverestedtoverticalin

20、tegrationarenotsufficient.Decisionsonwhethernottoverticallyintegratedependonabroadrangeofcomplexeconomicfactsanumberofwhichareinternaltotheundertakingconcerned.13.Intheapplicationoftheanalyticalframewksetoutintheprevious

21、paragraphitmustbetakenintoaccountthatArticle81(1)distinguishesbetweenthoseagreementsthathavearestrictionofcompetitionastheirobjectthoseagreementsthathavearestrictionofcompetitionastheireffect.Anagreementcontractualrestra

22、intisonlyprohibitedbyArticle81(1)ifitsobjecteffectistorestrictintertechnologycompetitionintratechnologycompetition.14.Restrictionsofcompetitionbyobjectarethosethatbytheirverynaturerestrictcompetition.Thesearerestrictions

23、whichinlightoftheobjectivespursuedbytheCommunitycompetitionruleshavesuchahighpotentialfnegativeeffectsoncompetitionthatitisnotnecessaryfthepurposesofapplyingArticle81(1)todemonstrateanyactualeffectsonthemarket(14).Meover

24、theconditionsofArticle81(3)areunlikelytobefulfilledinthecaseofrestrictionsbyobject.Theassessmentofwhethernotanagreementhasasitsobjectarestrictionofcompetitionisbasedonanumberoffacts.Thesefactsincludeinparticulartheconten

25、toftheagreementtheobjectiveaimspursuedbyit.Itmayalsobenecessarytoconsiderthecontextinwhichitis(tobe)appliedtheactualconductbehaviourofthepartiesonthemarket(15).Inotherwdsanexaminationofthefactsunderlyingtheagreementthesp

26、ecificcircumstancesinwhichitoperatesmayberequiredbefeitcanbeconcludedwhetheraparticularrestrictionconstitutesahardcerestrictionofcompetition.Thewayinwhichanagreementisactuallyimplementedmayrevealarestrictionbyobjectevenw

27、herethefmalagreementdoesnotcontainanexpressprovisiontothateffect.Evidenceofsubjectiveintentonthepartofthepartiestorestrictcompetitionisarelevantfactbutnotanecessarycondition.FlicenceagreementstheCommissionconsidersthatth

28、erestrictionscoveredbythelistofhardcerestrictionsofcompetitioncontainedinArticle4oftheTTBERarerestrictivebytheirveryobject.15.Ifanagreementisnotrestrictiveofcompetitionbyobjectitisnecessarytoexaminewhetherithasrestrictiv

29、eeffectsoncompetition.Accountmustbetakenofbothactualpotentialeffects(16).Inotherwdstheagreementmusthavelikelyanticompetitiveeffects.Flicenceagreementstoberestrictiveofcompetitionbyeffecttheymustaffectactualpotentialcompe

30、titiontosuchanextentthatontherelevantmarketnegativeeffectsonpricesoutputinnovationthevarietyqualityofgoodsservicescanbeexpectedwithareasonabledegreeofprobability.Thelikelynegativeeffectsoncompetitionmustbeappreciable(17)

31、.Appreciableanticompetitiveeffectsarelikelytooccurwhenatleastoneofthepartieshasobtainssomedegreeofmarketpowertheagreementcontributestothecreationmaintenancestrengtheningofthatmarketpowerallowsthepartiestoexploitsuchmarke

32、tpower.Marketpoweristheabilitytomaintainpricesabovecompetitivelevelstomaintainoutputintermsofproductquantitiesproductqualityvarietyinnovationbelowcompetitivelevelsfanotinsignificantperiodoftime.Thedegreeofmarketpowernmal

33、lyrequiredfafindingofaninfringementunderArticle81(1)islessthanthedegreeofmarketpowerrequiredfafindingofdominanceunderArticle82.16.Fthepurposesofanalysingrestrictionsofcompetitionbyeffectitisnmallynecessarytodefinetherele

34、vantmarkettoexamineassessinteraliathenatureoftheproductstechnologiesconcernedthemarketpositionofthepartiesthemarketpositionofcompetitsthemarketpositionofbuyerstheexistenceofpotentialcompetitsthelevelofentrybarriers.Insom

35、ecaseshoweveritmaybepossibletoshowanticompetitiveeffectsdirectlybyanalysingtheconductofthepartiestotheagreementonthemarket.Itmayfexamplebepossibletoertainthatanagreementhasledtopriceincreases.17.Licenceagreementshowevera

36、lsohavesubstantialprocompetitivepotential.Indeedthevastmajityoflicenceagreementsareprocompetitive.Licenceagreementsmaypromoteinnovationbyallowinginnovatstoearnreturnstocoveratleastpartoftheirresearchdevelopmentcosts.Lice

37、nceagreementsalsoleadtoadisseminationoftechnologieswhichmaycreatevaluebyreducingtheproductioncostsofthelicenseebyenablinghimtoproducenewimprovedproducts.Efficienciesatthelevelofthelicenseeoftenstemfromacombinationoftheli

38、censstechnologywiththeassetstechnologiesofthelicensee.Suchintegrationofcomplementaryassetstechnologiesmayleadtoacostoutputconfigurationthatwouldnototherwisebepossible.Finstancethecombinationofanimprovedtechnologyofthelic

39、enswithmeefficientproductiondistributionassetsofthelicenseemayreduceproductioncostsleadtotheproductionofahigherqualityproduct.Licensingmayalsoservetheprocompetitivepurposeofremovingobstaclestothedevelopmentexploitationof

40、thelicenseesowntechnology.Inparticularinsectswherelargenumbersofpatentsareprevalentlicensingoftenoccursindertocreatedesignfreedombyremovingtheriskofinfringementclaimsbythelicens.Whenthelicensagreesnottoinvokehisintellect

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