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Rules For Patent And Know-How License Agreement For Exemption From Competition Law Agreement The Ban

Original Language Title: Noteikumi par patentu un zinātības (know-how) licences līgumu atbrīvošanu no Konkurences likumā noteiktā vienošanās aizlieguma

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The Cabinet of Ministers of the Republic of Latvia of 23 March 1999 on the Regulation No 122 (in Riga. Nr. 18, 20) rules for patent and know-how license agreement for exemption from competition law agreement the ban Issued in accordance with article 15 of the law on competition of the fourth paragraph of point 1 i. General questions 1. terms used in the rules: 1.1., technical know-how, a collection of information that is relevant and specific way identify trade secrets;
1.2. patents, intellectual property rights to inventions, topographies of semiconductor products of the certificate of registration or a certificate of registration of plant varieties;
1.3. license agreement, a patent licence agreements, know-how licensing agreements or mixed patent and know-how licensing agreements;
1.4. the licensed technology: initial and all subsequent know-how by the licensor (the licensor) shall notify the licensee (licensee) under the license agreement; mixed agreements licensed technology includes both know-how and patents with licence;
1.5. licensed products — goods and services whose production or delivery made possible only with the licensed technology;
1.6. the licensed area — the area in which the licensee is authorized to use the licensed technology;
1.7. use: any use of the licensed technology, t.sk. production, sales in a specific area or letting the licensed products;
1.8. related companies — companies (company) (hereinafter referred to as the company), which meets at least one of the following symptoms: 1.8.1. undertakings in which the Contracting Parties have decisive influence;
1.8.2. companies, of which the Contracting Parties have decisive influence;
1.8.3. undertakings in which this provision referred to in paragraph 1.8.2. businesses have decisive influence;
1.8.4. undertakings in which Contracting Parties or of these rules, 1.8.1 1.8.2 1.8.3., or in the following companies are joint decisive influence; the following controlled undertakings are considered to be linked to each of the Contracting Parties.
2. Those rules shall determine the arrangements for individual companies, patent and know-how licensing agreements, which are exempt from competition law article 15 the prohibition laid down in the first subparagraph under article 15 of the law referred to in the second subparagraph, provided that they fulfil the requirements laid down in these provisions. That arrangement is allowed, without submitting the appropriate notification to the competition Council.
3. These provisions shall apply to both contracts between companies and business practices.
4. these provisions are not applicable to licensing agreements: between 4.1 patent or know-how pool of members, if the license agreement refers to the effort. Patent or know-how pool is an agreement between the owners of patents or know-how about intellectual property sharing mutual licensing or assigning the license to the joint undertaking;
4.2. among the competitors taking part in a joint venture, or between one of the competitors and joint venture, if patent license agreement shall apply to the activities of the joint venture;
4.3. the case between competitors license the products referred to in the contract that each contracting party grants to the other contracting party patent or know-how licence, but the other Contracting Party, also concluding other agreements or cooperation with its affiliates, assigns the first Contracting Party patent, trademark or know-how licence or exclusive sales rights of the products;
4.4. the licensing, which contains conditions relating to intellectual property rights other than patents;
4.5. concluded only licensed products.
5. These rules are applicable: the provisions of 5.1 4.2 license referred to contracts where one of the constituent companies of the joint venture a joint venture is granted a patent or know-how licence provided that the licensed products and the replacement of the companies involved, the market share of the product market in question is up to 20% if the license production of the product, and up to 10% if the license for the production and distribution of the product. These provisions apply even if the market share referred to in the two subsequent financial years, rising by no more than one tenth;
5.2. multilateral licences 4.1 and 4.3. meaning of subparagraph, provided that the Contracting Parties are not territorially limited the production of licensed products, usage or trade, or licensed or effort in the use of technology;
5.3. license agreement, if the licensor is not the owner of the patent or know-how, but patentētāj or owner it is empowered to issue licences;
5.4. a patent or know-how licensing agreements, if the amount to be paid for the use of the license depends on the turnover achieved through these contracts for licensed products from this product of quantity produced or the number of operations performed using know-how or patents;
5.5. license agreements in which the licensee and the licensor's rights and obligations assumed by those affiliates.
II. License Agreement, to which the agreement does not apply prohibition 6. Agreements ban does not apply to the license agreement concluded between the two companies — the licensor and the licensee, and in which the Contracting Parties have entered into any of the following obligations: 6.1 the licensor does not give license to any third party to use the licensed technology in the licensed territory;
6.2. the Licensor will not even licensed technology in the licensed territory;
6.3. the licensee will not use the licensed technology areas, which itself booked the licensor;
6.4. the licensee will not and will not use the licensed product or use the licensed technology to the territories in which the license granted to other licensees;
6.5. the licensee will not exercise an active trade policy area in which the licences have been issued to other licensees, and in particular — do not advertise products in ways not branch and stocks of these products in these areas;
6.6. the licensee does not begin to market the licensed products, to the territories in which the license granted to other licensees;
6.7. the licensee will only use the licensor's trademark or his specific presentation of the goods, to distinguish the licensed product, subject to the condition that the licensee may identify themselves as a manufacturer of licensed products;
6.8. the licensee will limit the production of licensed products to the quantity required for the production of the product itself, as well as sell licensed products only as your product or part of a single substitution or otherwise with your product sales related manner, provided that the licensee is free to determine the required quantity.
7. After conclusion of patent license agreement, an exemption from the prohibition of this provision of the arrangement 6.1, 6.2, 6.3, 6.4 and 6.5. referred to conditions of contract shall be valid for not more than five years after the appearance of the licensed products on the market.
8. After conclusion of the know-how license agreement, an exemption from the prohibition is in force the agreement: 8.1. unless the Contracting Parties have identified the specific know-how (the know-how is identified, if it out or otherwise written in such a way that it is possible to verify that it fulfils the criteria of relevance and business secrets, and to make sure that the licensee is not restricted in the use of their technology know-how can be described; also license agreement in or together), and with the help of the know-how, the experience gained have notified to the other Contracting Party for the duration of the contract but only as long as the know-how remains secret (if it in General and precise manner (or its components) generally is not known or not available, each individual component of the know-how can also be partially known or available) and are relevant (if it contains information which is relevant to the product in whole or in part, the manufacturing process for the provision of the service or the development of know-how);
8.2. to this rule 6.1, 6.2, 6.3, 6.4 and 6.5. referred to in terms of not more than 10 years after the appearance of the licensed products on the market;
8.3. to this rule 6.6. provisions referred to no more than five years after the appearance of the licensed products on the market;
8.4. to this rule 6.7 and 6.8 referred terms throughout the term of the contract, as long as the know-how remains secret and is essential.
9. After conclusion of mixed patent and know-how license agreement, an exemption from the prohibition is in force the agreement: 9.1 if the Contracting Parties identified in any meaningful manner the specific know-how, but only so long as is in force in the relevant patents and know-how remains secret and is substantial;
9.2. with regard to the rules referred to in point 6.6. the agreement for not more than five years after the appearance of the licensed products on the market.
10. Exemption from the prohibition of agreements, even if the license agreement is included in any of the following conditions, which is not a restriction of competition: 10.1 if the licensee has the following obligations: 10.1.1. not to disclose the know-how provided by the licensor also after termination of the contract;
10.1.2. not to issue licences to third parties or not to pass on your license;

10.1.3. not to use the licensed patents or know-how after termination of the contract as long as the patent is maintained and remains a trade secret;
10.1.4. to grant the licensor a licence in respect of the use of the licensed technology experience and its new use, provided that: 10.1.4.1. licence for non-exclusive use of the experience and the licensee himself can freely use the experience gained, as well as to license it to third parties, without disclosing the know-how obtained from the licensor, as long as it remains a trade secret;
10.1.4.2. licensor undertakes to grant the licensee an exclusive or non-exclusive license for the licensor's own experience;
10.1.5. to comply with certain quality requirements for the licensed products or to purchase certain goods or services from the licensor or from a particular company, so far as this is necessary for the appropriate use of the licensed technology and to ensure compliance of the products manufactured by the licensee in the quality indicators appropriate to the licensor and other licensees, as well as allow the licensor to take control;
10.1.6. to inform the licensor on patent infringement or misappropriation of know-how, to take the same legal actions against violators of these rights or cooperate with Licensor;
10.1.7. to continue to make payments until the end of the agreement, the Contracting Parties within the time prescribed, and if the know-how has become publicly known other than licensor's fault, as well as additional payments if the know-how has become publicly known fault of the licensee, then breaking the contract;
10.1.8. limiting the use of the licensed technology only in one or more areas that affect the licensed technology, or one or more product markets;
10.1.9. pay a minimum licence fee or produce a minimum quantity of the licensed products, or perform a minimum number of technological operations, using the licensed invention;
10.1.10. after conclusion of the contract offer the licensee the different types of benefits that it does not offer to other companies;
10.1.11. highlight the licensed products to the licensor's name or by an indication of the patent referred to in the licence agreement;
10.1.12. not to use the licensor's technology in the design of equipment to third parties, while maintaining the right to increase its capacity or to design new equipment for their own use, making the appropriate payment to the licensor;
10.1.13. deliver to individual consumers with certain quantities of products licensed, subject to the condition that the licensed area for consumers is another source of supply;
10.2. If licensor has the following rights: 10.2.1. objects to the fact that the licensee uses the licensed technology outside the licensed territory;
10.2.2. terminate the agreement if the licensee contests the secret or the licensed know-how or patents licensed relevance validity if the patents owned by Licensor or its related undertaking;
10.2.3. terminate the agreement if the licensee towards opposition to the patent;
10.2.4. terminate the agreement if the licensee starts to compete with the licensor or its affiliated companies in the production of competing products, use, distribution, research and development, or have the right to request that the licensee provide the licensed know-how is used only for the manufacture of the licensed products and services.
11. If these provisions of the various circumstances referred to in paragraph 10 of the agreement are prohibited under the Competition Act, the agreement to them however, apply the exemption from the prohibition of agreements, even if the contract does not contain any of the provisions of paragraph 6 of the said conditions.
III. License agreements to which the exemption from the prohibition of agreements not applicable 12. Exemption from prohibition and the arrangement of these rules the conditions referred to in paragraph 11 is not applicable to the license agreement, if either of the following conditions: 12.1. a Contracting Party shall be limited to the price, or the determination of royalty discounts products;
7.6. a Contracting Party is competing with the other party or its affiliated companies in the production of competing products, use, distribution, research and development;
12.3. on one or both of the parties are required to: 12.3.1. with no objective reason to satisfy the seller and consumer demand, which works in their specific areas and could be traded for licensed product in other areas;
12.3.2. prevent consumers and vendors to buy licensed products from other vendors, using for this purpose the intellectual property rights or other measures;
12.4. Contracting Parties before the conclusion of the license agreement have been competitors and one of them is the choice of the customer, t.sk. the purpose of certain customer groups, determine the form of distribution or use of — to split the customers network-product packaging types, except that rule 6.7 and 10.1.13. referred to;
12.5. the licensee must transfer the Licensor the right to patents licensed patent improvement and new applications;
12.6. in concluding a new contract or a contract is automatically renewed for a period exceeding that rule 7 and 8 deadline referred to in paragraph 1, and include the newly acquired experience in the contract, the licensor is required to other companies not give license to the licensed technology licensed areas or use the licensed technology or of the other Contracting Party in the territory of other licensees.
IV. Notification of individual agreement 13. Exemption from prohibition of the arrangement is to apply also to such licensing agreements, which include the provisions of paragraphs 6 and 10 of those restrictive obligations and which do not contain this provision, paragraph 12, if the Contracting Parties provide notice of the competition Council and the following permission to conclude a license agreement for a certain period of time.
14. The competition Council after submission of the notification may be exempted from the prohibition of agreements even if either of the following conditions: 14.1. the licensee at the time of conclusion of the contract to adopt additional quality conditions or license or to purchase goods or services that do not require licensed technology appropriate use or specific quality;
14.2. the licensee prohibited from challenging the licensed know-how or trade secrets, or licensed in the substantiality of the validity of the patent.
15. The competition Council may prohibit the application of the exemption from the prohibition of the arrangement, if it finds the license non-compliance with competition law in article 15 of the conditions of the second subparagraph, particularly if either of the following conditions: 15.1 the contract in the licensed territory impede effective competition in the licensed product with identical or substitute products, especially if the market share of the licensee, the licensed products (together with other products manufactured by the licensee in the that can replace the licensed product) ratio of all interchangeable goods market in question — more than 40 percent;
15.2. the licensee without any objectively valid reason refuses to meet the seller and consumer demand in the territories of other licensees;
15.3. one or both of the Contracting Parties: 15.3.1. without any objectively valid reason refuses to meet the seller and consumer demand in other areas;
15.3.2. using intellectual property rights or take other measures to impede consumers and sellers to buy identical or replacement products from other vendors;
15.4. Contracting Parties license at the time of conclusion of the contract have been competitors and the licensee's commitment to produce a minimum quantity of the licensed products, does not disclose the know-how in the license agreement and other obligations prevent the licensee's use of a competing technology.
16. If the competition Council ascertains that the license agreement complies with the provisions of paragraph 15 of the said conditions, the Contracting Parties are required to submit notification of the arrangement and appearance of the Cabinet in the order in which the coming in force of the agreement between market participants.
V. closing question 17. Patent and know-how licensing agreements that affect both the Latvian market and trade between Latvia and European Union Member States, the competition Council shall be assessed in accordance with article 64 of the Europe agreement in the norms.
 
Prime Minister, the Deputy Prime Minister, Minister of traffic A. Economic Minister Gorbunov a. shlesers