SPRL Louis Erauw-Jacquery v La Hesbignonne SC. (Competition ) [1988] EUECJ R-27/87 (19 April 1988)

SPRL Louis Erauw-Jacquery v La Hesbignonne SC. (Competition ) [1988] EUECJ R-27/87 (19 April 1988)

A provision prohibiting the licensee from selling and exporting basic seed is compatible with Article 85(1) EEC if necessary for the breeder to select licensees. A provision obliging the grower to comply with minimum prices fixed by the breeder falls within Article 85(1) only if, considering the economic and legal context, the agreement is capable of appreciably affecting trade between Member States.

Citation
[1988] EUECJ R-27/87
Parties
Breeder: Louis Erauw-Jacquery; Licensee: La Hesbignonne
Jurisdiction
European Union
Judgment Date
19 April 1988
Procedural Posture
Preliminary Ruling / Reference From National Court
Outcome
Preliminary ruling issued; compatibility of provisions depends on necessity and appreciable effect on trade.
Legal Topics
Article 85 EEC Treaty, Plant Breeders' Rights, Licensing Agreements, Price Fixing, Restriction of Competition
European Union Law Competition Law Intellectual Property Article 85 EEC Treaty Plant Breeders' Rights Licensing Agreements Price Fixing Restriction of Competition

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Parties

Louis Erauw-Jacquery

Breeder

La Hesbignonne

Licensee

Procedural Posture

Preliminary Ruling / Reference From National Court

Legal Issues

  1. 1 Whether provisions prohibiting sale/export of basic seed and imposing minimum prices fall within Article 85(1) EEC Treaty
  2. 2 Whether such provisions appreciably affect trade between Member States

Ratio Decidendi

A provision prohibiting the licensee from selling and exporting basic seed is compatible with Article 85(1) EEC if necessary for the breeder to select licensees. A provision obliging the grower to comply with minimum prices fixed by the breeder falls within Article 85(1) only if, considering the economic and legal context, the agreement is capable of appreciably affecting trade between Member States.

Court Disposition

Preliminary ruling issued; compatibility of provisions depends on necessity and appreciable effect on trade.

Orders

  • A provision prohibiting sale/export of basic seed is compatible with Article 85(1) if necessary for breeder to select licensees.
  • A provision imposing minimum prices falls within Article 85(1) only if the agreement is capable of appreciably affecting trade between Member States.