No L 233/22 Official Journal of the European Communities 30. 8. 85 COMMISSION DECISION of 12 July 1985 relating to a proceeding under Article 85 of the EEC Treaty (IV/4.204 Velcro/ Aplix) (only the French text is authentic) (85/410/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation No 17 of 6 February 1962, first Regulation implementing Articles 85 and 86 of the Treaty (), as last amended by the Act of Accession of Greece, and in particular Articles 3 and 5 thereof, Having regard to the notification filed on 30 January 1963 by Velcro France, Paris, later renamed Aplix SA (and hereinafter referred to as ‘Aplix’), of the licensing agreement which Overseas Textile Machinery Sarl (to whose rights Aplix succeeded on 16 February 1959) had signed on 14 October 1958 with Velcro SA (hereinafter referred to as ‘Velcro’), of Nyon, Switzerland, Having regard to the complaint made to the Commission under Article 3 of Regulation No 17 on 10 November 1981 by Velcro acting jointly with Velcro Europe BV (hereinafter referred to as “Velcro Europe’), of Haaksbergen, the Netherlands, that the notified agreement infringed Article 85 (1), Having regard to the Commission Decision of 26 June 1984 to initiate proceedings in this case, Having given the untertakings concerned the opportunity to make known their views on the objections raised by the Commission, in accordance with Article 19 (1) of Regulation No 17 and Commission Regulation No 99/63/EEC on the -hearings provided for in Article 19 (1) and (2) of Council Regulation No 17 (2) and having regard to the written submissions made by Aplix and Velcro and their statements at an oral hearing held on 25 October 1984, After consulting the Advisory Committee on Restrictive Practices and Dominant Positions, Whereas: A. FACTS I. The notified agreement The agreement of 14 Ocotber 1958 contains the following clauses: : (1) O] No 13, 21. 2. 1962, p. 204/62. (2) O] No 127, 20. 8. 1963, p. 2268/63. 1. Under clauses 1 and 2, Velcro grants Aplix the exclusive manufacturing and exploitation rights in France, Morocco, Tunisia and all the countries belonging to the French Economic Union for an invention of a type of textile fastener formed of two hook-bearing tapes, which was protected by French patent No 1.064.360. Aplix undertakes to exploit the patents in accordance with Velcro’s directions or generally to manufacture a " technically equivalent product (clause §). It also agrees to pay Velcro, in consideration of the patent rights and technical support granted to it, a lump sum plus annual royalties on its sales at a fixed percentage of the net selling price ex-works. Velcro is guaranteed a certain minimum amount of annual royalties and is to be allowed to check Aplix’s production and sales records for this purpose. ' | Under the first and second sentences of clause 6 Aplix is obliged to sell all the products arising from its exploitation of the patents under the trade mark ‘Velcro’. The right to use the trade mark is granted to Aplix free of charge. Under clause 8, Aplix is free to sell the products covered by the agreement in countries in which Velcro has not yet granted an exclusive licence. However, thé products may under no circumstances be exported directly or indirectly to countries covered by another Velcro licence (clause 2). Clause 19 provides that the agreement, which came into effect on 14 October 1958, is to last for as long as the patents covered by it and any patents that might be obtained in the same field remain valid. Clause 7 makes Aplix responsible for defraying the cost of maintaining the patents for the licensed invention, and any patents that might be obtained later in the field of the invention and which Aplix wishes to use, in force in the licensed territories during the currency of the agreement. In the first sentence of clause 9 the parties also undertake to communicate to one another without delay, and free of charge to the other party, any improvements that might be made to the invention.