The National Security and Investment Act 2021 introduced a statutory regime for government scrutiny of, and intervention in, certain deals for the purposes of protecting national security.
The Act establishes a call-in power, which enables the Secretary of State to review proposed deals and to block, or impose conditions on, those considered to give rise to a national security risk.
Much of the commentary on the legislation has focused on its impact on mergers and acquisitions activity. A mandatory requirement to notify the Government exists where deals involve acquisitions of control that pass certain thresholds and involve entities operating in one or more sectors of the economy designated as sensitive. However there’s a second strand to the legislation which has a lower profile, but which nonetheless has significance, particularly for the knowledge economy.
The government call-in power can also apply where there’s no change of ownership or control in a business but where assets, including intellectual property, are being traded. Without a mandatory notification requirement, holders of IP can find themselves in the dark about the national security implications of a proposed licence or assignation, leading to unwelcome ambiguity.
Join this webinar to learn how the National Security and Investment Act impacts the research and innovation sectors and how lawyers can navigate, and mitigate, the risk of a government call-in.
