1. Without prejudice to the application of Council Regulation No 17 and in accordance with Article 85 (3) of the Treaty the Commission may by regulation declare that Article 85 (1) shall not apply to categories of agreements to which only two undertakings are party and:  (a)  - whereby one party agrees with the other to supply only to that other certain goods for resale within a defined area of the common market ; or- whereby one party agrees with the other to purchase only from that other certain goods for resale ; or- whereby the two undertakings have entered into obligations, as in the two preceding subparagraphs, with each other in respect of exclusive supply and purchase for resale;(b) which include restrictions imposed in relation to the acquisition or use of industrial property rights-in particular of patents, utility models, designs or trade marks-or to the rights arising out of contracts for assignment of, or the right to use, a method of manufacture or knowledge relating to the use or to the application of industrial processes.2. The regulation shall define the categories of agreements to which it applies and shall specify in particular:  (a) the restrictions or clauses which must not be contained in the agreements;(b) the clauses which must be contained in the agreements, or the other conditions which must be satisfied.3. Paragraphs 1 and 2 shall apply by analogy to categories of concerted practices to which only two undertakings are party. 1. A regulation pursuant to Article 1 shall be made for a specified period.2. It may be repealed or amended where circumstances have changed with respect to any factor which was basic to its being made ; in such case, a period shall be fixed for modification of the agreements and concerted practices to which the earlier regulation applies. A regulation pursuant to Article 1 may stipulate that it shall apply with retroactive effect to agreements and concerted practices to which, at the date of entry into force of that regulation, a decision issued with retroactive effect in pursuance of Article 6 of Regulation No 17 would have applied. 1. A regulation pursuant to Article 1 may stipulate that the prohibition contained in Article 85 (1) of the Treaty shall not apply, for such period as shall be fixed by that regulation, to agreements and concerted practices already in existence on 13 March 1962 which do not satisfy the conditions of Article 85 (3), where: - within three months from the entry into force of the Regulation, they are so modified as to satisfy the said conditions in accordance with the provisions of the regulation ; and- the modifications are brought to the notice of the Commission within the time limit fixed by the regulation.2. Paragraph 1 shall apply to agreements and concerted practices which had to be notified before 1 February 1963, in accordance with Article 5 of Regulation No 17, only where they have been so notified before that date.3. The benefit of the provisions laid down pursuant to paragraph 1 may not be claimed in actions pending at the date of entry into force of a regulation adopted pursuant to Article 1 ; neither may it be relied on as grounds for claims for damages against third parties. Before adopting a regulation, the Commission shall publish a draft thereof and invite all persons concerned to submit their comments within such time limit, being not less than one month, as the Commission shall fix. 1. The Commission shall consult the Adivsory Committee on Restrictive Practices and Monopolies: (a) before publishing a draft regulation;(b) before adopting a regulation.2. Article 10 (5) and (6) of Regulation No 17, relating to consultation with the Advisory Committee, shall apply by analogy, it being understood that joint meetings with the Commission shall take place not earlier than one month after dispatch of the notice convening them. Where the Commission, either on its own initiative or at the request of a Member State or of natural or legal persons claiming a legitimate interest, finds that in any particular case agreements or concerted practices to which a regulation adopted pursuant to Article 1 of this Regulation applies have nevertheless certain effects which are incompatible with the conditions laid down in Article 85 (3) of the Treaty, it may withdraw the benefit of application of that regulation and issue a decision in accordance with Articles 6 and 8 of Regulation No 17, without any notification under Article 4 (1) of Regulation No 17 being required. The Commission shall, before 1 January 1970, submit to the Council a proposal for a Regulation for such amendment of this Regulation as may prove necessary in the light of experience.This Regulation shall be binding in its entirety and directly applicable in all Member States.
Output: Regulation of the Council on application of Article 85 (3) of the Treaty to certain categories of agreements and concerted practices