A final order was issued yesterday under the National Security and Investment Act 2021 (NSIA), preventing the acquisition of certain intellectual property by a Chinese company on national security grounds.
The IP relating to SCAMP-5 and SCAMP-7 vision sensing technology was granted to Beijing Infinite Vision Technology Company (BIVTC) under a licence agreement with the University of Manchester. The agreement enabled BIVTC to use the technology to develop, test and verify, manufacture, use and sell licenced products.
However, the final order issued by Kwasi Kwarteng (Secretary of State for BEIS) prevents this, on the basis that the technology has dual-use applications and could be used “to build defence or technological capabilities which may present national security risk to the United Kingdom”.
This is the first prohibition published under the NSIA, which came into force 6 months ago on 4 January 2022.
The publication of the final order follows additional market guidance issued this week. In an effort to help investors plan their deals, the government has set out more detail on the circumstances in which it may exercise its discretion to make further announcements, including where stakeholders choose to make their own statement about the notification / assessment process of an acquisition that they are party to.
For further information, please contact:
Nicole Kar, Global Head, Linklaters
nicole.kar@linklaters.com
