Grant-back Clauses in Patent Licensing Agreements

Nowadays, grant-back clauses are one of the most important conditions in patent licensing agreements. These conditions have beneficial impact on competition and anti-competitive behaviour that require special attention by competition law. In America, the provisions that were previously considered illegal are now assessed in accordance with rational criteria and as a part of the contracts.The illegality of these provisions may lead to the illegality of the contract. In Europe, only exclusive grant-backs are subject to an individual assessment, and not as a part of more global contract.Other conditions of the contract areexempt from general prohibition considered in Article 101 of European Treaty. In Iranian law, these provisionsare new issues which can be justified by the concept of reasonableness and the general rules of contracts. This condition does not specifically mention in General Policies of Implementation of Article 44 of the Constitution. It is forbidden if it is regarded as an unfair term oras an abusive of dominant economic conditions.