Date
Rule
801.2
Response/Comments
Upon further discussion with the writer, the issue became whether the transfer of certain royalty rights from licenses which these . . . were not being transferred for cash consideration constituted the acquisition of an asset. The licenses involved were non-exclusive licenses to the use of I.P for certain pharmaceutical products under development. Advised that the transfer of the royalty rights (essentially a revenue stream that had already been created) for consideration would continue the transfer of an asset for HSR purposes. NOTE: This does not address the transfer of an existing non-exclusive license for consideration.
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Question
From: (redacted)
To: mverne@ftc.gov
Date: 12/03/01 4:01 PM
Subject: Question
The short version of my voicemail question is whether transfer of an existing non-exclusive license to intellectual property is a potentially reportable asset acquisition. Seems to me that answer is either yes, because the transferor is parting with all of its rights under an existing contract, or no, because a non-exclusive intellectual property license isnt an asset for HSR purposes.