Seguro de patentes para Pymes

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Se anunciaba hace poco el lanzamiento en España de un seguro de propiedad intelectual  (Pons Intellectual Property / Sanza y Poolsegur / Opus Underwiting). Los datos que tenemos apuntan a una cobertura bastante amplia que incluiría (parece) las acciones por violación e incluso indemnizaciones frente a reclamaciones de daños, con una cobertura geográfica global. Desde la expresión de bienvenida a la introducción de este seguro en España:

IMG_20150905_194855169

  • Un producto asegurador adaptado al mercado español -para potenciar la innovación en España-, venía siendo objeto de análisis  y diseño minuciosos para su efectividad en nuestro país. En 2013 tuvimos ocasión de presentar,  de la mano de la Fundación Mapfre, nuestro estudio Viabilidad del Seguro de Patente en España, redactado por los Doctores Elena Pérez Carrillo (Universidad de Santiago de Compostela- Universidad de León) y Frank Cuypers (PRS-Zurig) (aquí y aquí). Que fue seguido por alguna otra reflexión como esta, etc.
  • Desde hace ya años, los seguros de patentes son conocidos en jurisdicciones como EEUU, donde es habitual encontrar pólizas taylor  adecuadas para grandes corporaciones que cuentan con importantes carteras de patentes, licencias y otros derechos. En Europa, son también contratados en Alemania en un diseño algo distinto.
  • En España, investigadores de la talla de la profesora Doña Celia Sánchez-Ramos, científica y ganadora entre muchos otros del Gran Premio Internacional de Invenciones de Ginebra 2013 venían reclamando protección para los inventores -muchos de ellos vinculados al mundo académico y de la pequeña empresa- que se deciden no sólo a patentar, sino también a licenciar o en cualquier modo explotar sus invenciones.  Uno de los grandes problemas que se encuentran es su propia debilidad frente a la infracción de sus derechos. El coste de litigios es tan elevado que en la práctica se hallan indefensos, particularmente si el infractor es una gran corporación o incluso un patent troll.

 Los avances en el mundo asegurador son bienvenidos siempre, máxime si como en este caso se orientan a favorecer la asunción de riesgos de innovación en España, a potenciar el I+D+i  y a favorecer tal actividad en empresas de mediano y pequeño tamaño. También conviene que las coberturas se ajusten efectivamente al mercado al que se dirigen. Y, en este caso concreto sería deseable que las coberturas diseñadas resulten asequibles para innovadores e inventores de reducida capacidad económica -y gran capacidad innovadora- .

Life Time Contracts. Rethinking Contract Law. European Social Contracts Group

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La Universidad de Luxemburgo, junto con el European Social Contracts Group (EuSoCo) anunciaban hace poco la celebración de su nuevo seminario internacional en Luxemburgo el 30 septiembre 2016.

El seminario representa la puesta en marcha de una nueva fase de debate sobre contratos de duración vital, cuyos rasgos principales fueron analizado en la obra Life Time Contracts: Social Long-term Contracts in Labour, Tenancy and Consumer Credit Law (L. Nogler & U. Reifner (eds), Eleven International Publishing 2014.

Junto con la participación de los investigadores principales, la jornada incluirá paneles en los que los jóvenes investigadores participantes puedan exponer sus presentaciones y opiniones sobre  Life Time Contracts, en una clara apuesta hacia el futuro.. Los temas principales sobre los que se centrarán las ponencias incluyen

  1. Dimensión colectiva de los Contratos duraderos a lo largo de la vida (Life Time Contracts- LTC)
  2. LTC, contratos de trabajo y la economía digital
  3. LTC, contratos de alquiler y contratos de crédito al consumo

Mas y →

Lesson 4 (1)(2) (3). International Business Law. Intellectual Property. Patents, Trademarks. Notes for IBL

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Industrial and Intellectual Property. International Business Law. NfNJ Lesson 4 (1)

1. Industrial property rights

Industrial property includes patents, trademarks, industrial designs,  geographical indications; etc

1.1 Invention patents

  • Definition 
    • A patent is an exclusive right granted for an invention (inventive activity), which is a product or a process that provides, a new product or procedure for doing something (novelty), and offers a new technical solution to a problem (industrial application). To get a patent, technical information about the invention must be disclosed to the public in a patent application.
    • Registering a patent gives the holder the exclusive rights over his or her invention for a limited period, 20 years. Other people cannot make, use, offer for sale, sell or import a product or a process based on the patented invention. The patent holder can give someone else temporary permission to use the invention through a patent license agreement or may sell the patent.  It is not possible to renew a patent after it expires.
  • Rights 
    • The patent owner/ right holder has the exclusive right to prevent or stop others from commercially exploiting the patented invention. In other words, patent protection means that the invention cannot be commercially made, used, distributed, imported or sold by others without the patent owner’s consent
    • Patents are territorial rights. In general, the exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region
    • The protection is granted for a limited period, generally 20 years from the filing date of the application
  • Patents protect technical inventions: new products or procedures which involve an inventive step and have industrial application.
  • The maximun duration of the patent is 20 years

 

  • Scope of terrotorial protections
    • NATIONAL: If the inventor needs protection in only one European country,  he or she can register a patent at the national level.
    • EUROPEAN:
      • For a wider protection they can register a European patent with the European Patent Office (EPO). The European Patent  can protect the invention in up to 5 States, members of the «Munich Patent Agreement».
      • A European patent needs to be validated by the national patent office in each country where protection is required.
    • INTERNATIONAL (MEMBERS OF THE PARIS UNION:
      • Protection in various  States, through the Patent Cooperation Treaty, or Treaty of Washington (PCT)
      • The PCT system of «multiple » national registrations was created by the Patent Cooperation Treaty (within the Paris Union, the International Patent Cooperation Union) . The PCT was signed in 1970.
      • The PCT provides a unified procedure for filing patent applications to protect inventions in more that one country of the Paris Union («letter box» system)
      • The patent application filed under the PCT is called an «international application», or PCT application.
  • Priority, iIn accordance with the Paris Convention for the Protection of Industrial Property (art 4):
      • (1) Any person who has duly filed an application for a patent, or for the registration of a utility model, or of industrial design, or of a trademark, in one of the countries of the Union, or his successor in title, shall enjoy, for the purpose of filing in the other countries, a right of priority during the periods of 1 year for Patents and Utility Models; 6 months for designs and trademarks  (from the date of the filing)
  • More EU Patent Law
  • More International Patent Law

Garexo

1.2 Trademarks and distinctive signs

  • Definition
    • A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of other enterprises. Trademarks are protected by intellectual property rights
  • Rights
    • a trademark registration will confer an exclusive right to the use of the registered trademark. This implies that the trademark can be exclusively used by its owner, or licensed (temporarily)  to another party for use in return for payment
  • Registration
        • At the national/regional level, trademark protection can be obtained by filing an application for registration with the national/regional trademark office and paying the required fees.
    • International registration. At the international level (Trademark Law Treaty 1994) provides for International registration procedures. There are two options: either country by country applications or using the Madrid System., administered by WIPO (See Madrid «Monitor»  simplified registration system)
    • Trade Marks registration has a duration of 10 years, that can be renewed with no limit

 

See also, for further details and clarifications, entries about trademarks in Spain

(…)

Lesson 4 (2) Intellectual Property. IBL. Notes for non-jurists

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Lesson 4 (2) Intellectual Property.

 UNDER CONSTRUCTION 

 

(Compulsory readings. Supplement to classroom notes and course materials)

I Introduction

Intellectual Property is intangible property resulting from creations. Its owners and holders have specific rights, as established by the Law. Please note the differences:

  • (Propiedad Industrial) industrial property, ie: patents on inventions, designs and models, protected designations of origin;  new varieties of vegetal, etc
  • (Signs), trademarks, registered trademarks, service brands etc
  • (Propiedad intellectual) copyright and related rights, ie: music, literature, paintings, sculptures.
  • Commercial strategies and other immaterial property rights: trade secrets, know-how, confidentiality agreements, or rapid production.

Gijón, Asturias

Intellectual Property rights (IPRs) allow titleholders (inventors, creators, artists, or other rightsholders) – to decide how, when and where their creations are used and/or exploited. Such rights have a negative and a positive manifestation

IP protection varies from one IP right to another. In very general terms we say that:

  • patents allow the holder to stop third parties from making, using or selling the holder’s invention for a certain period (maximum of years (20)
  • trademarks  protect the  «hallmark» (signo distintivo) of protected product/service by preventing other business from the offering, etc  services/products under the same hallmark
  • copyright / neighbouring rights.
    • moral or paternity contents
    • economic content,
  • Other IP
    • Classroom notes
  • Please note: licence / cession

Long term contracts. ¿Hacia unos principios Unidroit de los contratos comerciales internacionales de duración?

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Los Principios (y Comentarios) Unidroit  sobre «Contratos Comerciales Internacionales»  cubren en sus orientaciones lo que podría considerarse como parte general del derecho de contratos. Sobre ese núcleode sus  Principles of International Commercial Contracts, con fuerte inspiración en la United Nations Convention on Contracts for the International Sale of Goods (CISG),  Unidroit sigue trabajando también para identificar Principios comunes a otros contratos que no responden necesariamente al mismo esquema general. Concretamente continúan los trabajos relacionados con los contratos de duración, analizados actualmente por el Grupo de trabajo de Unidroit para la reforma de los principios Unidroit de Contratos mercantiles(comerciales) internacionales.  El Working Group on Long-Term Contracts, constituido para realizar propuestas de modificaciones a los Principios (versión 2010) y a sus comentarios, se reunió en enero de 2015 – con la participación como observadora de la española y catedrática de Derecho mercantil de la U. Carlos III, la Dra Pilar  Perales (CISG Advisory Council). ha abordado hasta ahora los siguientes aspectos de los «long term contracts»

  • Concepto de contratos (comerciales) de larga duración
  • Terminación por motivos de fuerza
  • Contratos con «términos abiertos»
  • Restitución post contractual de contratos concluidos por tiempo indefinido
  • Acuerdos para la negociación de buena fe
  • Contratos con «términos evolutivos»
  • Acontecimientos inesperados
  • Cooperación entre las partes
  • Obligaciones postcontractuales

Reproducimos algunas de las aportaciones efectuadas en los debates del Grupo de trabajo , a la espera de la próxima actualización de resultados.

  • Sobre la necesaria actualización de los Principios, más allá del modelo de venta (Preámbulo. Comentarios). «The Principles were originally conceived mainly for ordinary exchange contracts such as sales contracts to be performed at one time. In view of the increasing importance of more complex transactions – in particular long-term contracts – the Principles have subsequently been adapted to take into account also the characteristics and needs of these transactions for a definition of the notion of “long-term contract”
  • Sobre la noción de contratos de duración (Art 1.11, Comentarios), The Principles, …, refer to “long-term contracts” as distinguished from ordinary exchange contracts such as sales contracts to be performed at one time. Three elements typically distinguish long-term contracts from ordinary exchange contracts: duration of the contract, an ongoing relationship between the parties, and complexity of the transaction. For the purpose of the Principles, the essential element is the duration of the contract, while …Depending on the context, examples of long-term contracts may include contracts involving commercial agency, distributorship, out-sourcing, franchising, leases (e.g. equipment leases), framework agreements, investment or concession agreements, contracts for professional services, operation and maintenance agreements, supply agreements (e.g. raw materials), construction/civil works contracts, industrial cooperation, contractual joint-ventures, etc

Más:

International Business Law. Notes for non jurists. (4)

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Intellectual property rights (IPR) protect a firm’s intangible assets, allowing enterprises to profit from their creative and broadly innovative activities. Intangible assets account for more than half the value of companies and their importance is growing. In a world where EU companies compete more on innovation, creativity and quality than on price, intellectual property is a powerful tool for EU enterprises to become more competitive.

International Business Law (International Trade Degree-ULE). Lesson 3 (2) . Notes IBL

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Lesson 3 (2).  Unfair competition

Directive 2005/29/EC of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Directives 84/450/EEC, 97/7/EC, 98/27/EC and 2002/65/EC and Regulation (EC) No 2006/2004 (Unfair Commercial Practices Directive), defines the commercial practices which are prohibited in the European Union (EU). It thus protects the economic interests of consumers, competitors and markets before, during and after a commercial transaction has taken place.

      • The Directive has been amended by Directive (EU) 2019/2161 of 27 November 2019 on better enforcement and modernisation of Union consumer protection rules, part of the ‘New Deal for Consumers”
  1. The framework for Unfair Competition in the EU, sets out a GENERAL CLAUSE in accordance to which Unfair Commercial Practices are those which:
                    • do not comply with the requirements of professional diligence, and
                    • are likely to materially distort the economic behaviour of the average consumer.

2. It also grants SPECIAL PROTECTION TO SOME POPULATION GROUPS which are especially vulnerable  (because of their age -children, elderly-, credulity,  mental or physical illness, etc.)

3. The Directives also  DEFINE TWO SPECIFIC CATEGORIES OF UNFAIR COMMERCIAL PRACTICES: misleading practices (by action or omission) and aggressive practices.

I- MISLEADING PRACTICES

          1. By action. A practice is misleading if it contains false or untrue information or is likely to deceive the average consumer, even though the information given may be correct, and is likely to cause him to take a transactional decision he would not have taken otherwise. Examples of such actions include false or deceiving information on:
                • the existence or nature of the product;
                • the main characteristics of the product (its availability, benefits, risks, composition, geographical origin, results to be expected from its use, etc.);
                • the extent of the trader’s commitments;
                • the price or the existence of a specific price advantage;
                • the need for a service, or repair.

B.  By omission. Such occur when material information that the average consumer needs to make an informed transactional decision is omitted or provided in an unclear, unintelligible, ambiguous or untimely manner and thereby causes (or might cause) that consumer to take a purchase decision that he or she would not have otherwise taken.To evaluate such «omissions»  the context is taken into account,

II.- AGGRESSIVE COMMERCIAL PRACTICES

On the one hand, and in accordance with this legal EU framework, several elements must be taken into consideration in order to determine whether an aggressive commercial practice occurs:

        • the nature, location and duration of the aggressive practice;
        • the use of threatening or abusive language or behaviour;
        • the exploitation by the trader of any specific circumstance affecting the consumer in order to influence his/her decision;
        • any disproportionate non-contractual conditions imposed on the consumer who wishes to exercise his/her contractual rights (such as to terminate or switch a contract).

On the other hand, a number of practices are directly classified as aggressive because they are included in a «blacklist” within the Directive. Annexe I to the Directive contains a list of 31 commercial practices which should be considered unfair in all circumstances.

  • In Spain, the Directive was transposed by Law 3/91, which has been modified. Please find here the consolidated version on the Spanish Law

Blockchain. Desarrollos. Crecimiento

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Blockchain,  un gran libro de anotaciones contables en el que se apuntan las transacciones que se llevan a cabo con Bitcoin, está en constante crecimiento.IMG_20150927_135349247

Las anotaciones se hacen en » bloques » que se yustaponen linealmente y de forma cronológica a medida que se suceden las transacciones en cualquier lugar del mundo. Es de acceso libre y permite el control por parte de los usuarios de Bitcoin, ya que este acceso es libre. Permitiría por tanto observar el valor de las transacciones y evitar los desvios de valor. Las principales plataformas de intercambios sobre estas tecnologías son BlockCypher de California, Conysens de Nueva York, y Bitstamp (sobre esta última anunciábamos que acaba de recibir una licencia en Luxemburgo y por tanto en la UE)

Sobre el protocolo Bitcoin, la base de datos blockchain la comparten todos los nodos que participan en un sistema. La copia completa del blockchain tiene registros de todas las transacciones Bitcoin ejecutados hasta la fecha (cada cinco minutos se estima que se crea un nuevo bloque y la velocidad es crecieciente). Puede dar una idea acerca del valor que tenía cada particular en un momento determinado, no obstante, al estar en constante crecimiento plantea o se prevé que plantee problemas de almacenamiento

Llamamos la atención sobre la reciente noticia de que varias consultoras internacionales como Deloitte o  PWH se han asociado con start ups tecnológicas para desarrollar aplicaciones basadas en blockchain. Ello contribuirá al crecimiento, mayor uso y operaciones, por tanto, más bloques añadidos que contribuyen a la necesidad de sistemas de registro y big data mining

International Business Law (International Trade Degree-ULE). Lesson 3 (1-4) . Notes IBL

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Lesson 3 (1-4). State Aid

State aid is an advantage in any form whatsoever conferred on a selective basis to undertakings/business by national public authorities. Thus, this excludes subsidies granted to individuals or general measures open to all enterprises (for example, taxation measures or employment legislation applicable to all business).

Features of State Aid:

  • intervention by the State or through State resources which can take a variety of forms (e.g. grants, interest and tax reliefs, guarantees, government holdings of all or part of a company, or providing goods and services on preferential terms, etc.);
  • it  gives the recipient an advantage on a selective basis, for example to specific companies or industry sectors, or to companies located in specific regions
  • competition has been or may be distorted;
  • the intervention is likely to affect trade between the Member States.

Despite the prohibition, some State Aid is compatible or maybe admissible in accordance with the Treaties (TFUE) and in accordance with secondary legislation (in particular Regulations,Decisions).

A) TREATIES (Treaty on the Functioning of the EU)

  • Automatic compatibility: 107, paragraph 2 allows for compatibility with the internal market (as it has been repeatedly declared by the case-law of the TJUE) of:
    • State Aid of a social nature granted to individual consumers provided that it is granted without discrimination as to the origin of the products;
    • State Aid to make good the damage caused by natural disasters or exceptional occurrences;
    • State Aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious unemployment;
  • Compatible if declared by the EU Commission. Article 107, paragraph 3 adds that some other types of State Aid may be considered compatible with the internal market (following a procedure of application to the Commission as explained hereinafter). :
    • State Aid to implement an important project of common European interest,
    • State Aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions and competition in the Community to an extent contrary to the common interest
    • State Aid to promote culture and heritage conservation where such aid does not adversely affect trading conditions and competition in the Community to an extent contrary to the common interest

B) SECONDARY LEGISLATION.

B.1 Under various EU exiting Regulations, State Aid  «EXCEPTIONS BY CATEGORIES» has been allowed in areas such as

  • Aid for training
  • De minimis aid
  • Aid for small and medium-sized enterprises

The procedure for exemptions by categories include Council Regulations that declare some categories exempted; and Commission Regulations developing the categories of State aid that the Council has already determined may be exempted

B.2 Under Commission Regulation 800/2008 a wide number of categories of aid were declared compatible. It consolidated previous Regulations and added categories of permitted State aid which, being included in it, are not subject to the obligation of prior notification to the Commission. 

This Regulation exempts aids (in the simplified procedure that it introduced) are related to:

  • Investment and employment aid for SMEs
  • Aid for business start-ups by women entrepreneurs
  • Environmental aid
  • Aid in favour of consultancy for SMEs and their participation in trade fairs
  • Aid in the form of risk capital
  • Aid for research, development and innovation
  • Aid for training
  • Aid for disadvantaged or disabled workers

In order to be exempted from the notification requirement, the State resolutions granting aid must always refer to R 800/2008, comply with the maximum aid intensities laid down in that Regulation for each category, and subsidise only the «eligible» costs in the Regulation. In addition, such aid must have an «incentive» effect, i.e. serve as an incentive to develop certain activities or projects.

The 2013 revision of the State aid Procedural Regulation introduced the possibility of conducting State aid sector inquiries by the EU Commission, (before it was only possible as part of Antitrust and Merger control). State aid sector inquiries can be launched when State aid measures may distort competition in more than one  Member States, or where existing aid measures are no longer compatible with the regulatory framework.

(C) INDIVIDUAL EXCEPTION TO THE GENERAL PROHIBITION OF STATE AID. States wishing to grant State aid which is not among those declared compatible by the Treaties or by Regulation can issue an application to the EU Commission. On application by a Member State, the Council may act unanimously, decide that aid which that State is granting or intends to grant shall be considered to be compatible with the internal market

SUPERVISION AND CONTROL OF STATE AIDS. 

  • Articles 108 and 109 establish that the Commission shall, in cooperation with the Member States, keep under constant review all systems of aid existing in those States, and the Commission shall propose to the MS appropriate measures.
  • The EU Commission has strong investigative and decision-making powers. Central to it is the notification procedure which MS have to follow:
    • The Commission shall be informed, in sufficient time to enable it to submit its comments, of any plans to grant or alter aid.
    • The Member State concerned shall not put its proposed measures into effect until this procedure has resulted in a final decision. However, if State Aid is granted and the Commission finds that aid already granted by a State or through State resources is not compatible with the internal market or that such aid is being misused, it shall decide that the State concerned shall abolish or alter such aid within a period of time to be determined by the Commission.
    • If the State concerned does not comply in time, the Commission or any other interested State may refer the matter to the Court of Justice of the European Union direct. (CJEU)/TJUE.

 

Competition Law. Concentrations (EU). Notes for IBL

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Lesson 3 (II). Free competition law. Concentrations (1.3)

Introduction to concentrations of companies/firms from the perspective of Free Competition Law

A ‘concentration’ is the legal combination of two or more firms/companies. It can be attained in different ways, ie:  by merger or acquisition, by the implementation of a business strategy that results in a  change of control on a lasting basis, etc. The following are ways to implement a concentration

  • the merger of 2 or more previously independent companies or parts of companies;
  • the acquisition by 1 or more persons (that already control at least 1 company) or by 1 or more companies of direct or indirect control over 1 or more other companies.
  • other multiple transactions that are conditional on one another or are closely connected are regarded as a single concentration.

Although such operations may have a positive impact on the market, they may also appreciably restrict competition, if they create or strengthen a dominant market player. In order to preclude restrictions of competition, the European Commission exercises control over planned concentrations with an EU dimension (i.e. when the operation extends beyond the borders of an EU country and exceeds certain worldwide and EU-wide turnover thresholds). It may authorise them; authorise subject to conditions; or forbid them.

EU rules for the control of concentrations are found in Regulation (EC) No  139/2004, which entered into force on 1  May 2004. Regulation 139/2004/EC declares that mergers that create significative obstacles to the effective and real competition in the Internal Market; or in a substantial part thereto must be declared non-compatible with the Internal European Market. This regulation is applicable to all concentrations with an EU dimension.

EU rules can apply to all mergers no matter where in the world the merging companies have their registered office, headquarters, activities or production facilities, because even mergers between companies based outside the European Union may affect markets in the EU if the companies do business in the EU.

In determining whether a concentration is compatible with the common market, the Commission takes account on a case-by-case basis of several factors, such as the concepts of ‘EU dimension’, ‘dominant position’, ‘effective competition’ and ‘relevant market’.

The basic criterion used to analyse concentrations is that of a ‘dominant position’
  • One or more firms are said to hold a dominant position if they have the economic power to influence the parameters of competition, especially prices, production, product quality, distribution and innovation, and to limit competition to an appreciable extent.
EU dimension v National dimension
  • A concentration acquires an EU dimension, and therefore it must be notified to the EU Commission, where a number of thresholds related to these companies turnover are met: If the annual turnover of the combined businesses exceeds specified thresholds in terms of global and European market, (etc)
  • Below such thresholds, the national competition authorities -NCA- may review the merger.
  • The European Commission may also examine mergers which are referred to it from the NCA of the EU Member States. This may take place on the basis of a request by the merging companies or by request by the NCA of an EU Member State, or by the Commission own initiative.
  • Under certain circumstances, the European Commission may also refer a case to the NCA of an EU Member State.
Notification procedures in the EU :
  1. As a general rule, concentrations with an EU dimension must be notified to the Commission prior to their implementation (for instance: following the conclusion of the agreement and the announcement of the public bid or the acquisition of a controlling interest).
  2. Regulation 139/2004/EC allows for formal notification before the conclusion of a binding agreement. 
  3. It is also  possible to follow pre-notification procedures:
    • this allows the parties to show to the Commission, for example, that the proposed merger, while resulting in a concentration having a cross-border dimension, affects competition on the market of  only1 EU country. If that EU country does not express disagreement the Commission refer the case to the competent authorities of that EU country with a view to the application of that country’s national competition law.
    • the same procedure applies where a person or an undertaking wishes to draw the Commission’s attention to the cross-border effects which a merger without an EU dimension could have at European level.
EU Commission proceedings: 
  • The Commission is competent to initiate, at its own initiative proceedings: to carry out investigations and to impose fines.
  • If the parties to the concentration act in accordance with Regulation 139/2004/EC, they notify to the Commission as explained above. When the EU Commission receives a notification, it determines by Decision (secondary legislation) whether the notified concentration comes under the regulation, whether it is compatible with the EU internal market; or whether it raises serious doubts as to its compatibility.
    • Concentrations with an EU dimension cannot be implemented either before notification or for 3 weeks following notification. 
    • If a concentration has already been implemented and declared incompatible with the common market, the Commission can order the companies to dissolve the concentration..
  • The Commission examines notified concentrations  to check if they  significantly impede effective competition in the EU.
    • If they do not, they are approved unconditionally with a Commission Decision.
    • If the EU Commission finds that a proposed merger could distort competition, the parties may commit (agree) to taking action to try to correct this likely effect. For example, to sell part of the combined business,  to license technology to another company, etc. If the European Commission is satisfied that the commitments would maintain or restore competition in the market, it gives conditional clearance for the merger to go ahead (Commission Decision). It then monitors whether the merging companies fulfil their commitments and it intervenes if they do not. If no compromise is proposed by the merging firms, the Project will be prohibited
    • The Commission can prohibit the concentration (Commission Decision)
  • To enforce compliance the Commission may impose the following sanctions:
    • fines, not exceeding 1% of the aggregate turnover of the company where:
      • intentionally or negligently, it supplies incorrect, incomplete or misleading information or does not supply information within the required time limit.
      • seals affixed during an inspection have been broken.
      • It can impose fines of up to 10% of the aggregate turnover of the company concerned where, either intentionally or negligently, it fails to notify a concentration prior to its implementation, implements a concentration in breach of the regulation or fails to comply with a Commission Decision.
    • periodic penalty payments: the Commission may impose periodic penalty payments not exceeding 5 % of the average daily aggregate turnover of the company for each working day of delay, from the date set by the Commission in its decision requiring information, ordering inspections, etc.
The European Court of Justice can abolish, reduce or increase any fines or periodic penalty payments imposed.

 

Lincoln. Library Tower. High Street. OX

Spain (not in 2019/20)
  • In Spain, our Law on Unfair Competition Ley de Defensa de la Competencia, Ley 15/2007, here-LDC- is based upon a complex definition of merger «concentración» related to the idea of change in the structure of control, either as a matter of fact or as a matter of Law (in accordance with our Company Law applying its criteria to any type of company). The Spanish central idea in mergers policy is that of change in the decision powers /control in a Group. Such idea is compatible with Regulation 139/2004/EC. Spanish Law mentions as possible situations of merger «concentraciones»: Mergers, the acquisition of control by one company over other company, the incorporation of Joint Companies, etc  (this is an open list).

LDC imposes upon companies the obligation to notify to Comisión Nacional del Mercado de Valores –CNMV- before the merger. It establishes time lapses for the CNMV to reply. If there is no reply the merger is authorised (silencio positivo) . However, until there is a decision or until the time limit has not elapsed, the merger cannot be implemented. LDC offers some 10 criteria to assess whether the merger must or must not be authorised. The main or core criteria is whether (or not) such merger can create obstacles to free competition in Spain

Competition Law and Unfair Competition Law (EU). Antitrust. Notes for IBL

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Lesson 3 (I). IBL. Free Competition Law. Antitrust, with special attention to its regulation in the EU (1.1  and 1.2 )

Foreword on Free competition (in the EU)

European competition policy is intended to ensure free and fair competition in the European Union. EU rules on competition (Articles 101 to 109 of the Treaty on the Functioning of the European Union – TFEU) are based on some main principles:

  1. (a and b) prohibition of concerted practices and other agreements and of abuse of a dominant position capable to affect competition within the common market (antitrust rules);
  2. preventive supervision of mergers with a European dimension (i.e. to ensure that the significant size of the proposed merged operation in the EU market would not result in restrict competition, with the prohibition of some mergers;
  3. supervision of aid granted by EU countries which threaten to distort competition by favouring certain undertakings or the production of certain goods;
    • Also, but beyond this Course
      • the liberalisation of sectors previously controlled by public monopolies, such as telecommunications, transport or energy
      • cooperation with competition authorities outside the EU.

The European Commission and the national competition authorities enforce EU competition rules. The cooperate among themselves within the European Competition Network (ECN), ensures effective and consistent application of the rules.

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1. 1 . Antitrust (illicit agreements/decisions/concerted practices and  abuse of dominant position)
  • Free Competition benefits the market in so far as it encourages the offer of products and services at the most favourable terms for of the participants in that market, as well as the access to products and services under non-discriminatory terms and conditions. To be effective, it requires companies to act independently of each other, and within a market where competitive pressures are exerted by its agents (producers, distributors, financiers, etc) operating in a level playing field. European antitrust policy is based in two central rules in the Treaty on the Functioning of the European Unión (Art 101 and Art 102 TFUE); as well as in secondary legislation (mainly Regulation (EU) 1/2003). The main Spanish Law in this area is  Ley de Defensa de la Competencia, Ley 15/2007, here

The Treaty on the Functioning of the EU (TFEU) prohibits antitrust (anti-competitive) behaviour, in the form of agreements, decisions and concerted practices which restrict competition (Article 101), and abuse of dominant positions (Article 102):

  • Article 101 of the TFEU prohibits agreements, decisions and concerted practices between two or more independent market operators which restrict competition. This provision covers both horizontal agreements / decisions /practices (between actual or potential competitors operating at the same level of the supply chain) and vertical agreements (between firms operating at different levels, i.e. agreement between a manufacturer and its distributor).
    • One of the clearest cases of illegal conduct infringing Article 101 is the creation of a «cartel» between competitors, which may involve price-fixing and/or market sharing behaviours, etc.. A cartel is a group (horizontal or vertical) of similar and independent companies which join together to fix prices, to limit production or to share markets or customers between them, or to engage in similar practices.
      • Please note that agreements/decisions/concerted practices may be horizontal (between competitors at the same level of the supply chain fixing prices or limiting production) or vertical (such as between a manufacturer and a distributor).
    • Under Article 101(3) of the TFEU, these prohibited behaviours may be permitted, as an exception, if they generate more positive than negative effects (if they improve production or product distribution, or they promote technical or economic progress, for example), and at the same time:
        1. they allow that some of their benefits reach the consumers
        2. they do not eliminate completely all competition in relation to the products or services affected.
        3. They do not impose on the companies that are a part of the agreement, restrictions which are not indispensable to achieve the positive objectives of the agreement
    • Limited exceptions to Antitrust rules are also provided for by Regulation (Reglamentos).
    • The exemptions can be declared in relation with any agreement or category of agreements between undertakings, or any decision or category of decisions by associations of undertakings, or any concerted practice or category of concerted practices. Please visit the European Commission site on Decisions on Exemptions
1 2 Antitrust (Abuse of dominant position)
  • Article 102 of the Treaty prohibits that companies, undertakings or firms that hold a dominant position on a market, abuse such position. Ie, by charging unfair prices, by limiting production, by refusing to innovate to the prejudice of consumers. The main rules on procedures to implement this article (secondary EU Law) are set out in Council Regulation (EC) 1/2003.

 

COMMON PROCEDURES ON ANTITRUST CONTROL (1.1 and 1.2)
    • The Commission may impose large fines on firms for such illegal business practices. Since 2004, national competition authorities can enforce EU antitrust rules on agreements/decisions/practices  (and on dominance abuse) in the same way as the Commission.
    • LENIENCY AGREEMENTS. There are special situations where leniency agreements can be reached between infractors and Competition authorities to minimize the consequences of their infringements: Many cartels are found out as the European Commission successfully carries out its own investigations to detect them. But other cartels have been detected by the European Commission after one of its members confessed and asked for leniency,  Leniency programmes (programas de clemencia) allow for the reduction of penalties.
    • SETTLEMENTS. Also, undertakings can settle their case by acknowledging their involvement in the cartel under investigation,  and thus, getting a smaller fine in return. (See Commission Regulation (EC) No 622/2008 of 30 June 2008 amending Regulation (EC) No 773/2004, as regards the conduct of settlement procedures in cartel cases  and  EU Commission Decisions pursuant to Article 7 and Article 23 of Council Regulation (EC) 1/2003 in cartel cases)

Authorities that supervise and control Antitrust Law  

  • The EU Commission is empowered by the Treaty to apply antitrust and it has investigative powers (a.e. inspection at business and non-business premises, written requests for information, etc.). The Commission may also impose fines on those undertakings which violate the EU antitrust rules.
  • European Court of Justice is competent in Antitrust EU cases
  • National Competition Authorities (NCAs) such as in Spain the CNMC (Comisión Nacional de Mercados y Competencia) are empowered to apply Articles 101 and 102 of the Treaty fully, to ensure that competition is not distorted or restricted.
  • National courts may apply EU and National provisions to protect the individual rights conferred on citizens by the Treaty.
  • Please note: Competition law does not only involve administrative sanctions. It also involves actions for damages before national courts (both stand alone actions and follow up actions).

EU competition laws must be applied coherently throughout the EU.

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Información estandarizada para supervisión y/o estadística de aseguradoras. SolvenciaII

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La Orden  ECC/724/2016, de 9 de mayo aprueba modelos de información a efectos de supervisión, estadísticos y contables de obligado cumplimiento para las entidades aseguradoras y reaseguradoras. Desarrolla y concreta una parte de las obligaciones de información que en último término tomas su base en Solvencia II

La trasposición de la Directiva 2009/138, sobre el acceso a la actividad de seguro y reaseguro y su ejercicio (Solvencia II), fue realizada con la Ley 20/2015, de ordenación, supervisión y solvencia de las entidades aseguradoras y reaseguradoras (ver entrada) y por el Real Decreto 1060/2015, de 20 de noviembre, de ordenación, supervisión y solvencia de las entidades aseguradoras y reaseguradoras. Ese marco normativo modificó la información comunicable por parte de las entidades aseguradoras, reaseguradoras y por sus grupos. Actualmente, los modelos con la información a remitir a la Dirección General de Seguros y Fondos de Pensiones, o al órgano supervisor autonómico competente, se recogen por un lado, en la normativa europea de directa aplicación y, por otro en nuestro ordenamiento interno, y es en el marco en el que se aprueba la Orden ECC/724/2016 de 9 de mayo (BOE de 14 de mayo de 2016)

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  • El Art 114 de la Ley 20/2015, de 14 de julio, distingue dentro de la información que hacen públicas estas entidades, por un lado la información a efectos de supervisión, y por otro lado la información a efectos estadísticos y contables.
    • La información para supervisión se ha unificado para promover la convergencia supervisora, mediante el Reglamento de Ejecución (UE) 2015/2450 de la Comisión (normas técnicas de ejecución en relación con las plantillas para la presentación de información a las autoridades de supervisión) La Orden ECC/724/2016 contiene modelos de información a remitir con los datos existentes a la entrada en vigor del régimen de Solvencia II, así como los modelos de información anual y trimestral, tanto para entidades individuales como para grupos.
    • La información a efectos estadísticos y contables, de periodicidad trimestral. Se unificaron los formularios correspondientes en relación con las entidades de régimen general.
      • Sobre esta información estadística/contable, (post scriptum):
        • La información cuantitativa trimestral a efectos estadísticos y contables para entidades aseguradoras y reaseguradoras en régimen general y en régimen especial de solvencia, se aprobaron por Orden ECC/724/2016, de 9 de mayo,
        • También la Orden ECC/1591/2016, de 4 de octubre, por la que se aprueban los modelos de información cuantitativa a efectos estadísticos y contables a remitir con periodicidad semestral por los grupos de entidades aseguradoras y reaseguradoras.
  • Además,
    • Se simplifica la información que deben aportar las entidades re-aseguradoras
    • Se completa la información relativa al seguro de decesos en las entidades sujetas al régimen general.
    • Para las entidades acogidas al régimen especial de solvencia (no les resultan aplicables los modelos de información para supervisión unificados) se aprueban los modelos de información cuantitativa a efectos de supervisión, estadísticos y contables a remitir con carácter trimestral, y se regula la obligación de remisión de información a efectos de supervisión a la entrada en vigor del régimen especial de solvencia. Esta información, necesaria para conocer la situación inicial de estas entidades de acuerdo con la nueva normativa, figura en los modelos del anexo IV, será objeto de un envío único y estará referida al 1 de enero de 2016, fecha de entrada en vigor del régimen especial de solvencia.

Post scriptum.- Comentarios Lossear y Rossear. Revista Española de Seguros, 2016, núm 165-166

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