May 22, 2025 CompetitionBy DICOPO

Council and Parliament strike deal concerning new regulation on licensing of intellectual property for crisis management

On May 21, the Council and European Parliament reached a provisional agreement on a new EU regulation enabling compulsory licensing of intellectual property during crises, such as pandemics or natural disasters. This measure would allow the use of patents without the consent of rights holders to ensure access to critical products across the EU. Compulsory licensing is intended as a last resort, with priority given to voluntary agreements. The regulation excludes certain sectors like gas, semiconductors, and defense products, and does not require the disclosure of trade secrets. It establishes a unified EU framework to replace the current patchwork of national rules, applicable only when an official EU crisis mechanism is triggered. The agreement still needs formal approval by both the Council and the European Parliament.