Technology Transfer & U.S. and EU Export Controls

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Export controls are a key concern for any company operating in the cross-border context, especially in light of expansive U.S. jurisdiction, anticipated new controls over “emerging and foundational” technologies, and an increasingly robust EU export control regime. U.S. export controls, in particular, can present unique challenges, because under U.S. law, all U.S.-origin items worldwide are subject to U.S. jurisdiction, as are many non-U.S.-origin items that incorporate U.S. content or are based on U.S. technology.

The coming U.S. controls over “emerging and foundational” technologies are particularly notable, as they could portend a new era in which the United States will seek to restrict the flow of sensitive technology not only to combat proliferation, but to protect U.S. leadership over that technology. This approach to export controls, not seen in decades, could prompt counter-measures from other world powers, such as the EU and China, as they seek to protect their own technology.