Licensee estoppel: an overview of the position under English and European law

Abstract

This article intends to raise awareness of the English law doctrine of licensee estoppel and how it may be relevant in practice. The relevant English case law and its relationship with English statute and European legislation are discussed. Many practitioners are unaware of the nature and significance of licensee estoppel under English law. The doctrine of licensee estoppel seems at first sight to run contrary to European competition law: this situation is made more complicated by the fact that European legislation and case law seems to presume that such a doctrine does not exist. Once the doctrine itself and its relationship with European competition law have been explained, the remedies that are available and commercially relevant to licensees become clearer. These considerations are relevant to practitioners drafting and negotiating technology transfer agreements under English law, as well as to those advising licensors and licensees on their rights and available remedies.