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The European Commission has adopted a revised Technology Transfer Block Exemption Regulation (TTBER) and updated Guidelines, both of which took effect on May 1, 2026. A one-year transitional period applies to agreements already in force.
Revised Framework Under Article 101 TFEU
Article 101 of the Treaty on the Functioning of the European Union (TFEU) prohibits agreements between companies that restrict competition within the EU internal market. The prohibition does not exempt technology licensing agreements by default. The revised TTBER and updated Guidelines set out the conditions under which such agreements may be impacted by block exemption.
The exemption applies automatically: agreements that satisfy the TTBER’s conditions do not require individual assessment. The regulation covers any agreement capable of affecting competition within the EU internal market, regardless of where the parties are incorporated.
Updated Safe-Harbor Thresholds and Grace Period Adjustments
The market share thresholds remain at 20% for agreements between competitors and 30% for agreements between non-competitors. Technologies without revenue may now be attributed a zero-market share, simplifying analysis for pre-commercial technologies. The grace period following an exceedance of the applicable threshold has been extended from two years to three years.
Data Licensing Under the Revised TTBER
The revised framework addresses data licensing expressly for the first time. An agreement falls within the TTBER where the licensed data qualifies as know-how or is protected as a database under EU copyright law or the sui generis database right, provided the license is granted for the production of goods or the provision of services. Outside these categories, the European Commission has indicated it will apply TTBER principles by analogy under Article 101 TFEU.
Changes to Technology Pools, Collective Negotiations, and Settlements
Technology pools must now implement safeguards to prevent royalty stacking where rights overlap, and the fair, reasonable, and non-Discriminatory (FRAND) obligation extends to licenses granted by the pool itself.
On collective licensing negotiation groups, the Guidelines draw a line between legitimate coordination and a buyer cartel, signaling an informal safe harbor where members’ combined demand and supply shares each remain below 15% on the relevant markets. Patent settlements are addressed through codified pay-for-delay guidance. With respect to territorial restrictions, cross-border bids in public procurement procedures now qualify as passive sales.
Next Steps
Agreements qualifying under the previous TTBER but not under the revised version will remain exempt until April 30, 2027. The revised TTBER will apply through April 30, 2038. During the transition period, companies should consider reviewing existing and planned licensing arrangements and may wish to prioritize data-licensing structures, participations in pools and collective negotiation groups, territorial restrictions in license agreements, and patent settlement structures.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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