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The Court of Justice of the EU (CJEU) has said that EU competition laws do not preclude businesses that licence the use of patented technology being required  to continue to pay royalties to licensors in patent licensing agreements even after those patents have been revoked as long as those agreements allow licensees “freely to terminate that agreement by giving reasonable notice”.   

What to take away: Review carefully the duration of any proposed royalty payments when negotiating patent licences and consider what should happen if the licensed patent is revoked.

Decision: Genentech v Hoechst and Sanofi-Aventis C-567/14

For more see our article on Out-Law here

11 Jul 2019