FTC asks for views on updated guidelines for IP licensing
The Federal Trade Commission (FTC) and the Department of Justice’s (DoJ) Antitrust Division are asking for public comments on a proposed update to the Antitrust Guidelines for the Licensing of Intellectual Property.
The guidelines, also known as the IP Licensing Guidelines, were issued in 1995. They lay out the FTC’s and DoJ’s competition policy on the licensing of IP protected by patent, copyright, and trade secret law, and know-how.
They have provided guidance to businesses and the public on the potential competition issues that may arise from IP licencing. The guidelines are also considered an analytical tool, and the FTC and DoJ have gathered further competition enforcement experience and policy expertise in this area.
The proposed update, which was announced on Friday, August 12, is intended to “reflect this knowledge” and is aiming to modernise the guidelines without changing the enforcement approach to IP licensing.
Through the update, the FTC and DoJ also aim to reflect changes in recent case law, such as the Defend Trade Secrets Act of 2016, approved by Congress in May this year, and longer copyright terms.
The FTC voted 3-0 in favour of issuing the update for public comment, and the agency and the DoJ are receiving comments until September 26.
Edith Ramirez, chairwoman at the FTC, said: “Licensing is a cornerstone of a strong system of IP rights because it offers one way that firms can maximise the value of their IP and realise an appropriate return on their investment.
“These updated guidelines reaffirm our view that US antitrust law leaves licensing decisions to IP owners, licensees, private negotiations, and market forces unless there is evidence that the arrangement likely harms competition,” she added.
