Further to our earlier update we can now confirm that the Treasury Laws Amendment (2018 Measures No. 5) Act 2018 (the Act) received Royal Assent on 12 March 2019.
The Act repeals section 51(3) of the Competition and Consumer Act 2010 (CCA), which has historically provided an exemption for certain licensing and assignment agreements for intellectual property (IP) rights which would otherwise breach restrictive trade practices prohibitions under the CCA.
The Act provides for a six month transition period for businesses to review the terms of their existing licensing and assignment arrangements to ensure ongoing compliance with anti-competitive conduct prohibitions under Part IV of the CCA. That transition period has now commenced and businesses have until 13 September 2019 to ensure their existing licensing and assignment arrangements comply.
As noted in our previous article, there has been some suggestion by the Government that the ACCC will issue guidance on the application of the law to IP arrangements. However, we consider it is unlikely that any class exemptions will come into effect before the expiry of the transition period.
We therefore recommend that businesses and individuals commence reviewing their existing agreements, and reach out for assistance where required as soon as possible.
|Brendan Coady | Partner
T +61 2 9291 6258
|Ooma Kurana | Senior Associate
T +61 2 9291 6246