Legislative Implementation of Flexibilities - Rwanda

Title:	Article 45 of the Law No. 31/2009 of 26/10/2009 on the protection of intellectual property
Field of IP:	Patents
Type of flexibility:	Ex-officio IP office control of anti-competitive clauses in licensing agreements
Summary table:

Provisions of Law

Article 45

Control of anti-competitive practices in contractual licenses

In order to guarantee free and honest practices in the exercise of industrial and commercial activities, the empowered authority shall examine, at the time the license contracts are registered, whether certain practices or conditions limit competition or may have prejudicial effects on trade and hamper the transfer and dissemination of technology.

The empowered authority may adopt appropriate measures to prevent or control license issue practices which may include exclusive reassignment clauses, conditions preventing the dispute of validity and a coercive grouped licenses regime.

The empowered authority shall examine in particular whether the clauses of the contract do not oblige the licensee to pay fees for an invention not used or not patented, or to pay enormous sums in fees, even before the invention is used.

The empowered authority shall examine whether the license contract does not oblige the licensee to import raw materials, intermediate goods or equipment from the licensor, even without the guarantee of quality and profitability of the goods to be produced.

The empowered authority shall verify the clauses of the contract license, the effect of which is to prevent by excessive means the export of the goods made by the licensee, and which authorize the export in return for enormous fees or limit the licensee's competitive opportunities on the domestic and foreign market.

Consequently, the empowered authority may refuse to record a license contract when he decides that the contract concerning the right in question contains one or more clauses that are abusive, or anti-competitive or in any manner restrain trade, or limit access to technology or are likely to have any of those effects. The empowered authority shall hear the allegations of the parties to the contract, if one or both so request. Those allegations shall take into account evidence that is pertinent. Any decision to refuse to record the contract may be subject to appeal to the appeal committee provided by this Law within a period of thirty (30) days from the date on which the owner was notified the empowered authority's decision.

Where the appellant is not satisfied by the appealing committee's decision, he may appeal to the competent tribunal within a period of thirty (30) days from the date on which he was notified the appealing committee's decision.

For the purposes of the provisions of this article, any limitations imposed on the licensee that do not derive from the rights conferred by the registration of the licensed right, and that are not necessary for the safeguard of that right shall be deemed abusive or, in the event that they have anti-competitive effects, anti-competitive.