License Agreement German Law

Article 101 of the TFUE concerns, among other things, horizontal and vertical technology transfer agreements. The TT-BER Regulation (EU) No. 316/2014) provides for certain general exceptions to infringement through a licensing agreement on, for example, patents, know-how and copyright for software. Individual derogations from restricted practices are possible if they meet certain criteria listed in Article 101, paragraph 3 of the treaty and are not covered by the restrictions. There are legal restrictions on some of the provisions mentioned in the licensing agreements. Exclusive licensing agreements are generally permitted, but exclusivity in the allocation of customers is an essential restriction (see question 30) and, therefore, these provisions are invalid. The same applies to a ban on the sale of the Internet in a selective distribution agreement which constitutes a restriction of competition under EU law (ECJ, Case No. C-439/09). The granting of provisions for transfer or exclusive licence for the improvements made by the licensee is excluded from the benefits of the TT (see question 18) and must therefore be assessed on a case-by-case basis in order to assess its competitive and anti-competitive effects. As a general rule, non-competition prohibitions are not allowed if they interfere with the licensee in the manufacture, use or sale of unprotected goods or products. The duration of the licence agreement may extend beyond the duration of protection of the intellectual property rights granted (see question 8).

Arbitration clauses are common in licensing agreements and are recognized in paragraph 1029 of the Code of Civil Procedure. A valid compromise clause results in a complaint of incompetence filed in a German court to be dismissed if the defendant makes the request before the oral proceedings (s. 1032, para. 1 BGB). This also applies when the place of conciliation is not located in Germany (Article 1025, paragraph 2, of the Code of Civil Procedure). Therefore, an arbitration procedure may take place in another jurisdiction. Popular arbitration bodies are the WIPO Arbitration and Mediation Centre, the International Chamber of Commerce and the German Arbitration Institution. A licence is the contractual concession of a right to use the mark.

The license may be granted under the following conditions: Are there any legal restrictions in your jurisdiction regarding the restrictions that a licensee may impose on users of its software in a licensing agreement? Contracting parties are free to denounce the licence in accordance with the provisions of the agreement.