Post-Brexit Shake-Up: Regulator Seeks to Replace EU Tech Licensing Exemption

Britain's competition regulator has recommended scrapping the EU-era Assimilated Technology Transfer Block Exemption Regulation (TTBER) when it expires on 30 April 2026, replacing it with a new 12-year UK Technology Transfer Block Exemption Order (TTBEO).

Reuters reported that the move reflects a post-Brexit push to establish a domestic framework tailored to UK innovation and competition priorities.

Why Change TTBER?

After Brexit, the UK carried over many EU exemptions, including TTBER, which allows companies to license or share technology such as patents, software, and know-how under competition law if certain conditions are met.

But the Competition and Markets Authority (CMA) argued in its final recommendation document that TTBER, in its current form, is ill-suited to UK markets.

According to the CMA, 'technology transfer agreements can often be pro-competitive and can benefit innovation, investment and growth ... but certain clauses within such agreements can also have negative effects on competition.'

Key Reforms Under the Proposed TTBEO

The CMA's plan keeps much of TTBER's structure but introduces UK-specific reforms. According to the regulator's report, the new framework would:

• Remove references to 'utility models', an intellectual property concept not recognised in the UK.
• Add database rights and database copyrights, reflecting the growing importance of data licensing.
• Provide two ways to qualify: either by meeting existing market share thresholds, or by showing that at least three substitutable technologies exist independently, ensuring agreements don't entrench dominance.
• Introduce a transitional period, allowing existing agreements covered by TTBER to retain exemption for one year after its expiry.
• Be accompanied by new CMA guidance, giving businesses clarity on interpreting the order.

Reuters noted that these adjustments aim to provide stability and flexibility while aligning rules more closely with British economic realities.

Industry Reactions

Tech licensing firms including Nokia, Sisvel International, and Avanci submitted responses during consultation, according to Reuters. Industry stakeholders warned of legal uncertainty if TTBER expired without replacement.

In its submission, InterDigital cautioned that not replacing TTBER would 'risk creating legal uncertainty and increasing compliance costs for technology transfer licensing in the UK.'

The company stressed that a stable exemption regime supports investment and innovation, particularly for cross-border licensing.

Legal experts described the CMA's proposal as pragmatic: it mirrors EU principles but allows for UK divergence where necessary. However, some observers warned in the CMA consultation responses that divergence could complicate cross-jurisdictional licensing deals.

Why It Matters

According to the CMA report, failing to renew or replace TTBER could expose agreements to challenge under Chapter I of the Competition Act 1998, leaving firms without legal certainty. A clear block exemption, by contrast, gives companies confidence to negotiate technology transfer deals without breaching competition law.

The government's adoption of a UK-specific order would also mark a symbolic regulatory shift. Reuters noted that the proposal is part of a wider post-Brexit agenda to "take back control" of competition law and reduce dependence on EU legacy rules.

Challenges Ahead

Despite its pragmatic approach, the CMA admitted that practical challenges remain. Determining whether three substitutable technologies exist in fast-moving sectors could be complex, and consistent interpretation across regulators and courts will be vital.

Guidance documents, the CMA confirmed, will accompany the order to help businesses navigate potential disputes.

The consultation period has now ended, and the CMA's recommendation is with the Secretary of State for final consideration.

If approved, the new UK-specific block exemption could come into force in April 2026, replacing TTBER and providing what the CMA describes as a 'future-proof framework' for technology licensing in Britain.