Principles for handling cases relating to technology license agreement passed in Fair Trade Commission
E010119Y4 Feb. 2001（E18）
Source:Economic Daily News 1/19/2001
Translated by Corrina Wu
In view of an increase in the patent license cases, the Fair Trade Commission (“FTC”) passed the Principles for handling cases relating to technology license agreement yesterday. The concerned parties to license agreements, who conduct concerted action, limit the scope in which the patent technology is used or limit the trading counterparts, will violate the Fair Trade Law and may be fined not more than NT$25,000,000. The parties who commit the same acts again will bear criminal liability. The Principles set forth examples of violation and possible violation of the Fair Trade Law constituted by the technology license agreement, so as to help dealers’ compliance with the law.
Point of the Principles:
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FTC’s Principles for handling cases relating to technology license agreement | |
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Examples of violation of the Fair Trade Law |
s the concerned parties to the license conduct concerted action and jointly determine the price of licensed goods or limit the quantity with respect to the goods s forcing the licensee to purchase or accept unnecessary patents s forcing the licensee to reward the licensor an exclusive license of the improvement made based on the licensed know-how s limiting the price of licensed goods manufactured and sold to another person by the licensee |
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Examples of possible violation of the Fair Trade Law |
s limiting the maximum volume of goods manufactured or sold by the licensee s limiting the licensee’s sales channels s limiting the licensee’s trading counterparts of spare parts and material sdiscriminating the licensee as far as trading conditions and license royalty are concerned |
