The UK Competition and Markets Authority (CMA) has issued a final recommendation to overhaul the UK’s approach to technology transfer agreements.

The regulator is urging the government to replace the current Assimilated Technology Transfer Block Exemption Regulation (TTBER) with a new UK block exemption order when the existing framework expires on 30 April 2026.

According to the CMA, the recommendation signals a move away from legacy EU-based rules on technology licensing, aligning post-Brexit competition regulation with domestic requirements.

The TTBER, retained following the UK’s departure from the European Union, sets out conditions under which companies can license and share technology. This includes patents and software, without falling foul of competition law.

The CMA’s proposal outlines a 12-year exemption order tailored for the UK landscape. It includes provisions that seek to offer legal certainty for technology transfer agreements while incorporating updated definitions and requirements relevant to current industry practices.

Industry stakeholders including Nokia, Sisvel International, and Avanci contributed feedback during the CMA’s consultation process. No respondents suggested letting the TTBER lapse without a replacement.

Six respondents explicitly warned that allowing the regulation to expire without substitution would have negative consequences for technology licensing and innovation in the UK market.

Respondents generally agreed that the TTBER had functioned effectively and generated benefits for technology transfer arrangements.

The CMA has recommended specific changes for the proposed UK exemption order. These include removing outdated references to “utility models” and expanding coverage to incorporate database copyrights and database rights. The changes also involve formally defining concepts such as active sales and passive sales.

The regulator also seeks to update the qualifying criteria for exemption.

Agreements would be eligible if they meet established market share thresholds. They could also qualify if there are at least three independently controlled, substitutable technologies in addition to those held by the parties to the agreement.

In its final recommendation to the government, the CMA stated that technology transfer agreements may encourage innovation, investment and growth, but certain provisions within these agreements can also adversely impact competition.

The authority aims to create a regulatory environment that supports both technological collaboration and safeguards against potential anti-competitive conduct.

The European Commission’s recent evaluation of equivalent regulations found them effective overall, with stakeholders noting increased costs in their absence.

The UK Secretary of State for Business and Trade will review the CMA’s proposal before making a decision on the future framework for technology transfer agreements. This process will determine what replaces the current TTBER once it reaches the end of its term.