0803005 Informal Interpretation

us-ftc-hsr-informal-interpretations-bc9369ddae65a5193eea71a2ea190bd00803005 Informal InterpretationGuidance

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Date
Rule
Exclusive License
Staff
Janice Johnson
Response/Comments
The proposed transaction is not reportable (i.e. not deemed to be an exclusive license) because Company A will retain its right to manufacture the product covered by re license. MV concurs.

Question

From: (redacted)

Sent: Thursday, March 06, 2008 4:20 PM

To: Johnson, Janice C.

Subject: Licensing scenario

Janice,

Thanks for the call this afternoon. This is just a quick emailto confirm our discussion that in a scenario in which Company A grants an"exclusive" license to Company B, but Company A retains the right tomanufacture the product that is covered by the license, then the license is notsufficiently exclusive to be treated as the transfer of an asset for purposesof the HSR Act, and the transaction therefore would not be reportable. Pleaselet me know if I've articulated this incorrectly or left anything out, andthanks again, 


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