IP Rights Must Be Addressed in Licensing Agreements from 25 June 2025
Contracting Parties in Non-EU Third Countries
For contracts involving only companies established within the European Union, and where delivery obligations are to be fulfilled solely within the EU, there is – based on the wording of Article 12g of Regulation (EU) No 833/2014 (“to a third country”) – no obligation to include a No-Russia clause.
No-Russia Clause
Pursuant to paragraph 1 of Article 12g, exporters must prohibit the re-export of certain goods to Russia and their re-export for use in Russia. These goods include items for the aerospace industry, jet fuel and fuel additives, firearms and other weapons, as well as so-called “High-Priority Items” such as integrated circuits, navigation devices, capacitors, certain plugs and sockets, transistors, and semiconductor components.
High-Priority Items
When granting IP rights and know-how to partners in third countries, their use must be contractually prohibited in connection with High-Priority Items, if such use is directly or indirectly intended for sale, supply, transfer, or export to Russia or for use in Russia.
Suggested Wording
On 22 February 2024, the European Commission published explanatory notes in its FAQs regarding the No-Russia clause under the sanctions regime. These FAQs include a model clause that should be an integral part of the contract and is deemed to fulfil the requirements of Article 12g. Alternative formulations are possible.