EC Competition Law

the restriction of a party's ability to determine its prices when selling products to third parties;

the limitation of output, except limitations on the output of contract products imposed on the licensee in a non-reciprocal agreement or imposed on only one of the licensees in a reciprocal agreement;

the allocation of markets or customers except:
(i) the obligation on the licensee or licensees to produce with the licensed technology only within one or more technical fields of use or one or more product markets,
(ii) the obligation on the licensor and/or the licensee, in a non-reciprocal  agreement, not to produce with the licensed technology within one or more technical fields of use or one or more product markets or one or more exclusive territories reserved for the other party,
(iii) the obligation on the licensor not to license the technology to another licensee in a particular territory,
(iv) the restriction, in a non-reciprocal agreement, of active and/or passive sales by the licensee and/or the licensor into the exclusive territory or to the exclusive
customer group reserved for the other party,
(v) the restriction, in a non-reciprocal agreement, of active sales by the licensee into the exclusive territory or to the exclusive customer group allocated by the
licensor to another licensee provided the latter was not a competing undertaking of the licensor at the time of the conclusion of its own licence,
(vi) the obligation on the licensee to produce the contract products only for its own use provided that the licensee is not restricted in selling the contract
products actively and passively as spare parts for its own products,
(vii) the obligation on the licensee, in a non-reciprocal agreement, to produce the contract products only for a particular customer, where the licence was granted in order to create an alternative source of supply for that customer; or

the restriction of the licensee's ability to exploit its own technology or the restriction of the ability of any of the parties to the agreement to carry out research and development, unless such latter restriction is indispensable to
prevent the disclosure of the licensed know-how to third parties.

the restriction of a party's ability to determine its prices when selling products to third parties save that this provision does not rule out the possibility of imposing a maximum sale price or recommending a sale price that does not amount to a fixed or minimum sale price as a result of pressure from, or incentives offered by, any of the parties;

the restriction of the territory into which, or of the customers to whom, the licensee may passively sell the contract products, except:
(i) the restriction of passive sales into an exclusive territory or to an exclusive customer group reserved for the licensor,
(ii) the restriction of passive sales into an exclusive territory or to an exclusive customer group allocated by the licensor to another licensee during the first two
years that this other licensee is selling the contract products in that territory or to that customer group,
(iii) the obligation to produce the contract products only for its own use provided that the licensee is not restricted in selling the contract products actively and
passively as spare parts for its own products,
(iv) the obligation to produce the contract products only for a particular customer, where the licence was granted in order to create an alternative source of
supply for that customer,
(v) the restriction of sales to end-users by a licensee operating at the wholesale level of trade,
(vi) the restriction of sales to unauthorised distributors by the members of a selective distribution system; or

the restriction of active or passive sales to end-users by a licensee which is a member of a selective distribution system and which operates at the retail level, without prejudice to the possibility of prohibiting a member of the system from operating out of an unauthorized place of establishment.

any direct or indirect obligation on the licensee to grant an exclusive licence to the licensor or to a third party designated by the licensor in respect of its own severable improvements to or its own new applications of the licensed technology;

any direct or indirect obligation on the licensee to assign, in whole or in part, to the licensor or to a third party designated by the licensor, rights to its own severable improvements to or its own new applications of the licensed technology;

any direct or indirect obligation on the licensee not to challenge the validity of intellectual property rights which the licensor holds in the common market, without prejudice to the possibility of providing for termination of the technology
transfer agreement in the event that the licensee challenges the validity of one or more of the licensed intellectual property rights.