242. Restrictive trade agreements and plant breeders' rights.

The grant of an exclusive licence of plant breeders' rights1 is not in itself incompatible with the provisions of the Treaty on the Functioning of the European Union (the 'TFEU') prohibiting agreements between undertakings which have the effect of preventing, restricting or distorting competition2 where such exclusivity promotes the dissemination of a new technology and competition in the Community between the new product and similar existing products3, although an exclusive licence or assignment with absolute territorial protection results in the artificial maintenance of separate national markets and is therefore contrary to the Treaty