The UK’s competition authority is proposing a new 12-year tech licensing regime to replace the old EU‐based rules.
What is the change
The existing system, inherited from EU law, allows companies to license patents, software and other technologies under certain “safe harbor” conditions without breaching competition law. That system is now seen as outdated.
The new framework would:
- Drop references to old legal terms (for example, “utility models”) and include modern rights such as database copyrights
- Grant exemptions if a licensing deal meets market share limits or if there are at least three competing alternatives
- Offer clearer guidelines so firms know when their licensing terms are safe and when regulators may intervene
Why this matters
This reform is aimed at moving UK rules away from EU models and making them fit better with how technology firms operate today. The goal is to encourage innovation, protect competition, and reduce legal uncertainty for licensing contracts.
It also aligns with broader UK regulation of Big Tech, where the competition authority has new powers to oversee dominant digital firms.
Risks and challenges
- Transition: The new regime must take effect without a gap once the old rules expire
- Setting thresholds: If limits are too lenient, dominant firms may exploit them; if too strict, many deals may fall outside safe zones
- Cross-border complexity: UK rules that diverge from EU or global norms might create friction in international licensing
- Enforcement burden: The regulator must develop expertise to interpret complex licensing agreements
- Resistance: Companies used to the old system may push back on tighter or novel rules
Impact on tech and licensing players
Major licensing firms and patent holders are already weighing in on the consultation. Their experience will influence how the rules are shaped.
Digital firms designated under newer UK regimes (for example those with “strategic market status”) may face additional regulations, making their licensing strategies more complex.
The competition authority also plans to operate under a set of guiding principles — such as pace, predictability, proportionality, and process — when regulating tech firms.
