NoL222/34 OfficialJournaloftheEuropeanCommunities 22.8.75
II
(Actswhosepublicationisnotobligatory)
COMMISSION
COMMISSION DECISION
of18July1975
relatingtoaproceedingunderArticle85oftheEECTreaty(IV/21.353—Kabel
metal-Luchaire )
(OnlytheFrenchandGermantextsareauthentic)
(75/494/EEC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle85
thereof;
HavingregardtoRegulationNo17(J)of6February
1962,andinparticularArticles4,6and8thereof;
Havingregardtothenotificationmadeon2February
1963ofthepatentandknow-howlicensingagree­
mentwhichKabel-undMetallwerkeNeumeyerAG,a
companywithitsregisteredofficeatNuremberg ,
Germany,whichlaterbecameKabel-undMetall­
werkeGutehoffnungshütte AG,withitsregistered
officeatHanover(hereinaftercalled'Kabelmetal'),
concludedon19June1958withEtsLuchaireSA,
Paris,France(hereinaftercalled'Luchaire');
Havingregardtothesummaryofthenotification
published,asrequiredbyArticle19(3)ofRegulation
No17,inOfficialJournaloftheEuropeanCommu­
nitiesNoC157of14December1974;
HavingregardtotheOpiniondeliveredon24April
1975bytheAdvisoryCommitteeonRestrictivePrac­
ticesandDominantPositionspursuanttoArticle10
ofRegulationNo17;I.
1.Kabelmetalhasdevelopedfromthecold-extru­
sionprocessawholerangeofspecialtechniquesfor
themachiningofsteelparts.
Atpresentthemanufacturing techniquesusedby
Kabelmetalarebasedonsecretprocessesandpractical
experience (know-how)andonalargenumberof
patentsinallEECcountriesotherthanIreland,
DenmarkandLuxembourg .Thesepatents,ofvarying
importance ,donotdirectlyaffectthebasicextrusion
process,whichinitselfmaybefreelyusedbyany
firm,butrelatespecificallytothemanufactureand
fittingtogetherofthetoolsfortheshapingofthe
parts,thephosphatization andlubricationoftheparts,
andingeneraltoimprovedmethods,inparticular
thoseusedtoobtainpartswithspecialshapes.
Thevariouspartsmanufactured onthebasisoftech­
niquesusedbyKabelmetalincludepistons,shock
absorbers,hollowaxles,spindles,extinguishers ,brake
parts,partsoffurniture,cogwheels,etc.Amongthe
majorusersoftheproductsthusobtainedarethe
motorindustry,theelectricalindustry,theextingui­
sher-manufacturing industryandthemechanical-engi­
neeringindustryingeneral.
2.Bythetermsofthelicensingandtechnicalassis­
tanceagreementconcludedon19June1958,as
amendedon4March1960,10November1960,16
January1962,31December1965and13March1974,
KabelmetalgrantedLuchaireanexclusivelicencefor (')OJNo13,21.2.1962,p.204/62.

22.8.75 OfficialJournaloftheEuropeanCommunities NoL222/35
agreementmustbesettledinaccordancewiththe
conciliation andarbitrationrulesoftheParisInterna­
tionalChamberofCommerce .themanufacture inFranceoftheabovementioned
productsusingitssecretandpatentedmanufacturing
techniques (currentorfuture),theexclusiverightto
selltheseproductsincertainnon-membercountries
(SpainandPortugal)andanon-exclusive licenceto
selltheseproductsinallthecountriesofthecommon
market. Asoriginallydrafted,theagreementcontainedanobli­
gationonthelicenseetotransfertoKabelmetalowner­
shipofsuchimprovements ,whetherpatentableor
not,asthelicenseemightmakeinconjunctionwith
Kabelmetal ;afurtherobligationnottosellthe
productsinquestionwithintheEEC,exceptinthe
territoryofspecifiedMemberStates,andanobligation
nottocontestthevalidityofthelicensor'spatented
processes.AttheCommission'srequest,however,the
partiesdeletedtheseobligationsfromtheagreement
witheffectfrom13March1974.Thepartiesagreedtoexchangeallrelevantinforma­
tionconcerningtheapplicationofthelicensedtech­
niques.Kabelmetalspecificallyundertooktogivethe
licenseeallnecessarytechnicalassistanceforthedura­
tionoftheagreement,inparticulartohelptraintech­
nicians,workoutproductionplanning,designtooling
anddeterminethetypesofsteelstobeused.The
licenseeundertooktograntKabelmetalanon-exclu­
sivelicenceinrespectofanypatentrelatingtosuch
improvements ofprocessesasshouldbediscoveredby
thelicensee,sothatKabelmetalmightnotonlyuse
themforitsownproductionbutalsoauthorizeany
otherlicenseewhoshouldgivethesameundertaking
tousethem.Luchairealsoundertooktokeepsecret
Kabelmetal'sknow-how :itwouldcommunicate such
know-howonlytoitsauthorizedrepresentatives and
employeesandtakeallreasonablestepstoensurethat
theytooshouldkeepitsecret.Theagreementexpireson31December1977.
3.Thefollowingfactorsalsoemergedduringinves­
tigationofthecase:essentially,thecold-extrusion
processinvolvestheplasticdeformationinapress,
withoutpre-heatingeitherofthepartorofthetooling
(punchesanddie),ofaroughblank,usuallyofmetal,
intoasolidorhollowpart.Theessentialdistin­
guishingcharacteristicofthecold-extrusion processis
thatitmakesitpossibletoworkwithmetalsat
ambienttemperature .Thisnormallyhascertainadvan­
tagesoverthe'traditional'deep-drawingprocessesin
thatitimprovesthemechanicalpropertiesoftheparts
(strength,fibrestructure,etc.)—asaresultofcold
hardening—aswellassavingmaterialandadditional
machining .Ingeneral,itcanbesaidthatitisbetter
tousecold-extrusion techniquestomanufactureparts
whichrequiretheremovalofalargequantityofma­
terialinsuccessiveoperations,providedthatthe
numberofpartstobeproducedjustifiestheuseof
expensiveequipment .Itshouldbenotedthatthe
investmentcostsfortheinstallationofoneproduction
unitperextrusion,withasufficientnumberofpresses
andtools,totalseveralmillionunitsofaccount.Inconsideration ofthelicence,Luchaireundertookto
payKabelmetalroyalties,originallycalculatedbyrefer­
encetothepurchasepriceofthematerialsused,and
subsequentlychangedtoalumpsum,paidininstal­
ments.Oncetheagreementhasexpired,Luchairemay
continuetomakeusewithoutpaymentofroyaltiesof
techniquesreceivedpriorto31December1972,while
theuseoftechniquesreceivedafterthisdatewillbe
subjecttothepaymentofroyaltiestheamountof
whichisstilltobefixed.
Thepartiesundertakeforthedurationoftheagree­
mentnottosell,eitherdirectlyorindirectly,products
manufactured usingKabelmetal'stechniquesin
certaincountriesoutsidetheEEC,thatistosayfor
KabelmetalinSpainandPortugal,andforLuchaire
outsidetheEECandthesetwocountries .However,
thisundertakingdoesnotapplytoimportsintothese
countriesofmachinesorassemblieswhichincor­
poratepartsmanufactured undertheagreement .Theextrusionprocesshasbeenusedsincetheendof
thelastcenturyonsoftmetalsandinthemanufacture
ofarmamentssuchasbrasscartridgecases.From1934
onwardsitwasextendedtosteelasaresultofinven­
tionsmadebyKabel-undMetallwerkeNeumeyerAG
andprotectedbysecretpatents.AftertheSecond
WorldWartheprocesswasconfiscatedbytheAllies
andthuscametobeusedwidelyinEuropeandinthe
USAforthemanufactureofmanydifferentpartsand
wasputtomanydifferentuses.Althoughthecold
extrusionprocessingeneralhasthusbeeninusefor
morethanthirtyyears,thereexistsawholerangeof
possibletechniquesnowusedbyvariousfirmsinthe
mechanical-engineering industry.Kabelmetalundertakesnottograntanylicencein
respectofitstechniquesontermswhicharemore
favourablethanthoseapplyingtoLuchairetoany
otherperson,companyorfirmanywhereintheworld.
Theagreementistobeperformedinaccordancewith
Frenchlaw;anydisputebetweenthepartiesoverthe

NoL222/36 OfficialJournaloftheEuropeanCommunities 22.8.75
tionaltechniquesofforgingandsintering,machining
bymetalremovalandcasting.Kabelmetal ,withallitsknow-howanditspatents,
holdsthekeytotheuseofcold-extrusion techniques
speciallydevelopedformanufacturing steelpartswith
particularlyawkwarddimensionsandshapes.Luchaire
profitsdirectlyfromKabelmetal'sdevelopmentwork
byturningtoKabelmetalwheneverithasanyspecial
problemsconcerningthemanufactureofnewparts
andnewtoolsandequipmentrequiringfreshinvest­
ment.ItshouldalsobepointedoutthatatpresentLuchaire
istheonlylicenseewithintheEECfortheproducts
manufactured onthebasisofKabelmetaltechniques .
4.NoobservationswerereceivedbytheCommis­
sionfromthirdpartiesfollowingthepublicationof
thesummaryofthenotification .Theproductscoveredbytheagreementaregenerally
manufactured onthebasisoftechnicalspecifications
andpartdesignssubmittedbycustomersbeforean
orderisplaced.Detailedtechnicalresearchisoften
requiredinorder,principally,toreducethenumberof
non-standardized shapes,suchaslargevariationsof
section,groovesandnecks.Thereisnowholesaleor
retailtradeinmostoftheseproducts,becausetheyare
generallydelivereddirectbyKabelmetalitselforits
licenseetomanufacturers whoincorporatetheminto
theirownproducts.II.
5.Article85(1)oftheTreatyprohibitsasincompa­
tiblewiththecommonmarketallagreement;
betweenundertakingswhichmayaffecttradebetween
MemberStatesandwhichhaveastheirobjectoreffect
theprevention,restrictionordistortionofcompetition
withinthecommonmarket.
6.BythetermsofitsagreementwithLuchaire,
KabelmetalundertooktograntLuchaireanexclusive
licenceforthemanufacture ,inaspecifiedpartofthe
territoryofthecommonmarket,ofpartsobtainedby
cold-extrusion usingitspatentedinventionsand
know-how .ApartfromsomedeliveriesmadeinBelgium,where
undertheoriginalversionoftheagreementof19
June1958Luchairehadanon-exclusive saleslicence,
Luchairehasnotasyetbeensupplyingfirmswithin
theEEC,otherthanthoseestablishedinFrance.
Undertakings inotherCommunitycountries(i.e.Italy,
theUnitedKingdom,BelgiumandtheNetherlands )
havebeensupplieddirectbyKabelmetal .
Itisimpossibletodetermineexactlythelicensees
shareofthemarket,sincetheproductsinquestionare
puttomanydifferentusesandmaybemanufactured
bothbyproducersusingdifferentcold-extrusion tech­
niques,includingsixundertakings establishedin
France,andbythoseusingrivaldeep-drawing tech­
niques.Nevertheless ,theinformationavailabletothe
CommissionsuggeststhatLuchairemustaccountfor
about20%oftheproductionofsuchpartsinFrance
in1974.Theother80%wasmanufactured by
competitorsandbyusersthemselves(mainlythelarge
carmanufacturers ortheirsubcontractors ).Apatentconfersontheholdertheexclusiverightto
usetheprotectedinvention;know-how,aslongasit
iskeptsecret,makesitpossiblefortheperson
possessingittomakesoleuseoftheinvention,orof
thetechnicalandeconomicinformationwhichisits
subject.Theholderofapatentorknow-howmay,by
licensingagreements ,authorizetheuseofthe
patentedinventioninaspecificpartofthecommon
marketcoveredbythepatent,orpassontheinven­
tionorsecretinformationtoanyfirminterestedin
usingit.
Rivaltechniquesforobtainingthesamepartsasthose
manufactured bycold-extrusion includethetradiIfthepatent-holder ,however,undertakestorestrict
theuseofhisinventionstoonesinglefirminaspeci­
fiedterritory,heisnolongerabletomakeagreements

22.8.75 OfficialJournaloftheEuropeanCommunities NoL222/37
withotherapplicantsforlicences;suchanunder­
takingonthepartoftheholderisnotoftheessence
ofthepatent;suchanexclusivelicencecovering
industrialpropertyrightsandknow-howmaybea
restrictionofcompetitionandthereforeprohibitedby
Article85(1).8.Theotherprovisionsoftheagreementbetween
KabelmetalandLuchairearenotcaughtbyArticle
85(1),becausetheydonothaveastheirobjector
effectasubstantialrestrictionofcompetitionwithin
thecommonmarket.Thisistrueinparticularofthe
following :
(i)Kabelmetalsundertakingnottograntanylicence
inrespectofitstechniquestoanyfirminany
partoftheworldontermsmorefavourablethan
thoseapplyingtoLuchaire(most-favoured
licenseeclause).Thelicensor'sundertakingto
extendtotheoriginallicenseeanymorefavou­
rabletermssubsequentlygrantedtootherlicen­
seeswouldnotingeneraldissuadethelicensor
fromgrantingfurtherlicencestothirdparties.In
specificcases,however,particularlywherethe
marketsituationwassuchthattheonlywayto
findotherlicenseeswastograntthemmorefavou­
rabletermsthanthosegrantedtothefirst
licensee,thisobligationcouldbeanobstacleto
thegrantingoffurtherlicencesandtherefore
constituteanappreciablerestrictionofcompeti­
tion.Inthisspecificcase,however,noneofthe
factspointtosucharestriction .Inthecaseinpoint,ashasbeenshownabove,the
techniquesinrespectofwhichKabelmetalhas
grantedlicencesareimportanttechniquesforthe
manufactureofroughpartsandthenumberofstrictly
competingandcomparableprocesses,likethenumber
ofmanufacturers usingthem,isrelativelysmall.
Luchaireholdsasubstantialshareofthemarketfor
thesearticlesintheEEC,andthisshareisallthe
greaterastheremainderisnotexclusivelyproduced
bycompetitorsbutalsobytheusersthemselves .
Kabelmetalforitsparthasaconsiderableturnoverin
Germany.Thisbeingso,theexclusivemanufacturing
licencegrantedbyKabelmetal ,apartfromrestricting
Kabelmetal'sfreedom,seriouslyaffectsthepositionof
others—notablymanymetallurgicalundertakings
withtheirregisteredofficesinFrance—whomight
wishtoapplythetechniquesinquestion,sincethey
arepreventedfromusingthesetechniqueswithinthe
commonmarket.
TheexclusivelicencegrantedtoLuchaire,therefore,
appreciablyrestrictscompetitionwithinthecommon
market.(ii)theprohibitiononexportsbythepartiestocoun­
triesoutsidethecommonmarket,sinceinthe
caseinpointthiswouldnotsubstantiallyaffect
eithercompetitionwithinthecommonmarketor
tradebetweenMemberStates,becausethe
productsinquestionarenotsuitablefor
marketingthroughintermediaries andarethere­
foreunlikelytobereimportedintotheEECand
subsequently soldfromoneMemberStateto
another.
7.Theexclusivemanufacturing licenceforFrance
grantedbyKabelmetaltothelicenseepreventsKabel­
metalfromgrantingfurtherlicencestootherfirms
whichwouldenablethemtouseitspatentedinven­
tionsandknow-howonFrenchterritoryand,
consequently ,puttheminapositiontoexportfrom
Francetootherpartsofthecommonmarket.
Thisrestrictionmustthereforeberegardedasliableto
affecttradebetweenMemberStatessinceitislikelyto
endanger,directlyorindirectly,freedomoftrade
betweenMemberStatesinsuchawayastohamper
attainmentoftheobjectivesofasingleinternational
market.(iii)LuchairesobligationtograntKabelmetal ,and
throughKabelmetalotherpossiblelicensees,non­
exclusivelicencesinrespectofsuchimprove­
mentsasLuchaireitselfmayhavemadetothe
techniquesinquestion.ThisrestrictsLuchaire's
freedomtomakecontractualdispositionsin
respectofsuchimprovements ,foralthough
Luchaireremainsfreeintheorytograntlicences
forimprovements toother'firms,whichwould
notnormallyhaveaccesstoKabelmetal'sbasic
processes,itcannotnowrefusetograntsuch
licencestocompetingfirmsusingthesame
processes,whicharethereforedirectlyinterested
inanyimprovement .Luchaire'sobligationto
permitthegrantingoflicencestoitscompetitors ,
thuslosinganycompetitiveadvantagewhich
mightresultfromthesaidimprovements ,would
tendtodiscourageanyeffortwhichthecompanyTheagreementinquestionthereforefallswithinthe
scopeofArticle85(1)oftheTreaty.

NoL222/38 OfficialJournaloftheEuropeanCommunities 22.8.75
torialadvantagesitderivesfromtheexclusionofany
otherfirmwhichmightbeinterestedinmanufac­
turingonthebasisofthelicensor'stechniqueswithin
theterritoryforwhichthelicenceisvalid.Thisprovi­
sionhasthereforeenabledanothermanufacturer
withintheEECtouseimprovedtechniquesfor
machiningsteelparts—techniqueswhich,compared
withthetraditionaldeep-drawing processes,make
possibleconsiderablesavingsinrawmaterialandthe
productionofhigh-qualityfinishedproducts.mightnormallymaketoobtainsuchanadvan­
tage.Suchaneffectmayrestrictcompetition ,
particularlyinanoligopolisticmarketstructure.
Inthemarketinquestion,asLuchaireisat
presenttheonlylicenseeinthecommonmarket
andasitisunlikelythatfurtherlicenseeswho
couldeffectivelycompetewithLuchairewillbe
appointedbeforethecontract'expires,theobliga­
tioninquestioncannotberegardedashavingan
appreciableeffectonconditionsintheEEC
market.
(iv)Luchaire'sundertaking tokeepsecretthe
know-howmadeavailabletoitbyKabelmetal ,
sincetheveryessenceoftechnicalknow-how,
whichisacollectionofindustrialprocessesunpro­
tectedbythelawonindustrialproperty,is
secrecy.Thiselementofsecrecyisanessential
precondition sothattheownerofthetechnical
know-howcanpassitontootherfirmsandis
thereforealsoanessentialprerequisite for
exploitingtheknow-howuntilsuchtimeasit
becomespublicknowledge .
(v)Luchaire'sundertakingtopayroyaltiesifituses
—oncethecontracthasexpired—thesecret
techniquesreceivedafteraspecifieddateduring
thelifetimeofthecontract,sincethisobligation
doesnotpreventthelicenseefromusingthe
know-howafterthecontracthasexpiredevenifit
hastopayroyaltiestodoso.Theobligationalsocontributestopromotingtech­
nicalprogressandtoimprovingtheproductionof
partsmanufacturedaccordingtothelicensor'stech­
niquesinthattheagreementmadepossiblebythe
obligationpermitsthelicenseetoaskforKabelmetafs
technicalassistanceindesigningnewpartsandnew
toolsandequipment,andthusencouragesjoint
improvement ofthelicensedtechniques .
11.Users,notablyelectrical-equipment andmotor­
vehiclemanufacturers andtheircustomers ,obtaina
fairshareofthebenefitsoftheeconomicandtech­
nicalprogressmentionedabove,forasaresultofthis
agreementtheyhaveattheirdisposalinthecommon
marketgoodstailoredtotheirneeds,inunusual
shapesanddimensions .MostusersinFrancecan,
thankstothecloseproximityofKabelmetal's
licensee,besureofobtainingefficienttechnicalinfor­
mationandassistanceinfindingwhichoftheparts
theyrequirecanbemadetohighertechnicalspecifica­
tionsoratlowerprices,aswellasregularsupplies.
Competitionbetweenrivalproductsissufficientto
guaranteeusersashareinthebenefitsinquestion.III.
9.UnderArticle85(3),theprovisionsofArticle
85(1)maybedeclaredinapplicableinthecaseofany
agreementbetweenundertakingswhichcontributesto
improvingtheproductionordistributionofgoodsor
topromotingtechnicaloreconomicprogress,while
allowingconsumersafairshareoftheresulting
benefit,andwhichdoesnot:
(a)imposeontheundertakingsconcernedrestrictions
whicharenotindispensable totheattainmentof
theseobjectives;
(b)affordsuchundertakingsthepossibilityofelimi­
natingcompetitioninrespectofasubstantialpart
oftheproductsinquestion.12.Luchairesexclusivelicenceforaspecificterri­
torymay,inrespectoftheuseofKabelmetal'ssecret
andprotectedtechniques ,beconsideredindispensable
toattainmentofthedesirableobjectivessetoutinthe
foregoingparagraphs .Giventheinvestmentsrequired
toapplyKabelmetal'stechniquesandtopromote
salesofproductsmanufactured byextrusionprocesses,
whichwhentheagreementcameintoforcewerenot
asyetwidelyusedandhadtocompetewithmany
otherprocessestowhichuserswerealreadyaccus­
tomed,Kabelmetalwouldhavebeenunabletogetany
interestedfirmintheEECtoapplythetechniquesit
possessedatthattime,orindeedanynewdevelop­
mentinvolvingfreshinvestment ,haditnotgivenan
undertakingthatotherfirmswouldbeunableto
competewithitdirectlybymanufacturing the
productsinquestionusingthesameprotectedor10.Kabelmetalsundertaking tograntLuchaire
exclusiverightscontributestopromotingeconomic
progress,sinceitmadepossiblethelicensingagree­
mentinquestionbyguaranteeingLuchaireasuffi­
cientreturnonitsinvestmentsbyvirtueoftheterri­

22.8.75 OfficialJournaloftheEuropeanCommunities NoL222/39
betweenMemberStatesoftheEEC.Sincetheagree­
mentinquestionistolapseverysoon,beforethe
expiryoftheKabelmetalpatentstowhichitrelates,it
wouldbeadvisabletoprovidethatthedecisionunder
Article85(3)willlapseonthesamedateastheagree­
ment.
17.Inorderthatitmaybeverifiedthatthe
amendedagreementasappliedinpracticedoesnot
exceedtheboundsofthedecisiondeclaringinappli­
cabletheprohibitioninArticle85(1),measures
shouldbetakentoensurethattheCommission is
informedofjudgmentsgivenunderthearbitration
clause,sincethesemightcontaininterpretations of
theagreementwhichdonottakeaccountofthescope
ofthisdecision,whichmightinconsequencehaveto
beamended .secrettechniquesintheterritorycoverdbythe
licensingagreement .Theprotectionwhichthisterri­
torialadvantagegivesagainsttheriskofinsufficient
useofproductioncapacitythathashadtobecreated
couldnotbeattainedbymeasureswhichwould
restrictcompetitiontoalesserdegree.
13.AlthoughLuchaireoccupiesanimportantposi­
tionintheEEC,theagreementinquestiondoesnot
giveitpowertoeliminatecompetitioninalargepart
oftherelevantproductmarket.Itshouldbenoted
herethatothercold-extrusion techniquesandother
deep-drawing processesareusedbyseveralfirms
withinthecommonmarket.Addedtothisisthefact
thatKabelmetafs licenseeisfreetoselltherelevant
productswithinthecommonmarketoutsidetheterri­
toryforwhichitholdsanexclusivemanufacturing
licenceandisespeciallyresponsible .
14.Asmattersnowstand,thelicensingagreement
betweenKabelmetalandLuchairesatisfiesallthetests
foradecisiongrantingexemptionunderArticle85(3).
IV.V.
18.Theagreementinquestiondoesnotsatisfythe
testsofArticle7(1)and(2)ofRegulationNo17.The
agreementwasalreadyinexistenceatthedateofentry
intoforceofRegulationNo17butwasnotnotified
bythedatespecifiedinArticle5(1)ofthesaidRegula­
tionanddidnotfallwithinsubparagraph (2)(b)of
Article4(2)oftheRegulationsinceitseffectisnot
simplytoimposerestrictionsontheexerciseofthe
rightsoftheuserofindustrialpropertyrights.
Consequently ,theprohibitioninArticle85(1)applies
tothewholeperiodbetween13March1962,thedate
ofentryintoforceofRegulationNo17,andthedate
ofentryintoforceofthedecisiondeclaringArticle85
(1)inapplicabletotheagreementinquestion,
HASADOPTEDTHISDECISION :15.Asoriginallydrafted,thelicensingagreement
betweenKabelmetalandLuchairedidnotsatisfythe
testsofArticle85(3),becauseitcontainedageneral
obligationonthelicenseenottoexporttootherEEC
countriesthearticlesmanufactured usingKabelme­
tal'stechniques ,theobligationtotransfertoKabel­
metalownershipofjointlydevelopedimprovements
andtheobligationnottocontestthevalidityofthe
licensor'spatents.Theseobligationsconstituted
substantialrestrictionsofcompetitionandcouldnot
beregardedasbeingoftheessenceofthelicensed
patentrightsorascontributingtotheimprovement of
productionordistributionofgoodsortopromoting
technicaloreconomicprogress.
AttheCommission'srequest,theseobligations
preventingapplicationofArticle85(3)wereon13
March1974deletedfromtheagreement .
PursuanttoArticle6(1)ofRegulationNo17,thedeci­
siongrantingexemptionunderArticle85(3)may
thereforehaveeffectfromthedateonwhichtheagree­
mentwasamended,namely13March1974.
16.ForpurposesofdeterminingpursuanttoArticle
8(1)ofRegulationNo17thedurationofthevalidity
ofthedecision,accountshouldbetakenofthefact
thattherestrictionsofcompetitionfounddonot
preventthefreemovementofthegoodsinquestionArticle1
TheprovisionsofArticle85(1)oftheTreatyesta­
blishingtheEuropeanEconomicCommunityare,
pursuanttoArticle85(3)thereof,declaredinappli­
cabletothepatentandknow-howlicensingagree­
mentconcludedon19June1958byKabelmetaland
Luchaire,asamendedon13March1974.
Article2
Theabovementioned undertakingsshallcommunicate
totheCommissionwithoutdelayanyjudgmentgiven
underthearbitrationclause.

NoL222/40 OfficialJournaloftheEuropeanCommunities 22.8.75
Article3
ThisDecisionshallhaveeffectfrom13March1974
to31December1977.
Article4
ThisDecisionisaddressedtothefollowingundertak­
ings:—EtsLuchaireSA,Paris,France.
DoneatBrussels,18July1975.
FortheCommission
ThePresident
François-Xavier ORTOLI—Kabel-undMetallwerkeGutehoffnungshütte AG,
Hanover,Germany,and