The document discusses the intersection between competition law and intellectual property rights (IPRs). While competition law aims to promote competition, IPRs create temporary monopolies. This can potentially create conflicts between the two areas of law. The document analyzes this relationship and how different jurisdictions have reconciled competition law with IPRs to balance these objectives.
The document discusses the intersection between competition law and intellectual property rights (IPRs). While competition law aims to promote competition, IPRs create temporary monopolies. This can potentially create conflicts between the two areas of law. The document analyzes this relationship and how different jurisdictions have reconciled competition law with IPRs to balance these objectives.
The document discusses the intersection between competition law and intellectual property rights (IPRs). While competition law aims to promote competition, IPRs create temporary monopolies. This can potentially create conflicts between the two areas of law. The document analyzes this relationship and how different jurisdictions have reconciled competition law with IPRs to balance these objectives.
The document discusses the intersection between competition law and intellectual property rights (IPRs). While competition law aims to promote competition, IPRs create temporary monopolies. This can potentially create conflicts between the two areas of law. The document analyzes this relationship and how different jurisdictions have reconciled competition law with IPRs to balance these objectives.
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SYNOPSIS ON
COMPETITION LAW AND IPR AT A CROSSROAD
BY: SHIKHA ROHRA
3RD YEAR, HNLU RAIPUR
Introduction Competition benefits consumers because it tends to lead to the optimum choice of products and services in terms of price, quantity, quality and consumer choice.1 By encouraging competitive behavior, competition law thus seeks to maximize consumer welfare. IPRs stimulate innovation by protecting inventors, thereby encouraging them to bring new or improved products and processes onto the market, which also benefits consumers. Hence, on first sight competition law and IPRs do not seem to clash.2 However, in the discussion on the interface between competition law and IP law, signs of conflict cannot be ignored. Generally, one seems to be aimed at what the other essentially tries to prevent. While competition law seeks to achieve economic efficiency by promoting competition and free operation of the market, IPRs create monopoly rights that can be used to frustrate this.3 This raises the question whether a hierarchy exists between the two concepts; will one prevail over the other in situations of conflict?
Competition law and intellectual property rights (IPRs) have evolved historically as two separate systems of law. There is a considerable overlap in the goals of the two systems of law because both are aimed at promoting innovation and economic growth. Yet there are also potential conflicts owing to the means used by each system to promote those goals. IP laws generally offer a right of exclusive use and exploitation to provide a reward to the innovator, to provide an incentive to other innovators and to bring into the public domain innovative information that might otherwise remain trade secrets. Competition authorities regulate near monopolies, mergers and commercial agreements with the aim of maintaining effective competition in markets.
1 To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy, Federal Trade Commission, October 2003, p. 3. 2 Dutch Competition Authority (NMA) report, Is de Mededingingswet ICTproof? May 2002, p. 23. 3 Cotter T.F., “Intellectual Property and the Essential Facilities Doctrine”, 44 Antitrust Bulletin 1, 1999, p. 227. Intellectual Property Rights (IPR) and Competition Law are both founded with the purpose of achieving economic development, technological advancement and consumer welfare. IPR are legal rights governing the use of such creations. This term covers a bundle of rights, such as patents, trademarks or copyrights, each different in scope and duration with a different purpose and effect.4 Competition law seeks to prevent certain behavior that may restrict competition to detriment consumer welfare. In short run, IPR encourages innovation and new products in the market, whereas in long run- Competition Law promotes consumer welfare by introducing new products to the market and maintaining the qualities of the goods in the market. Thus both are complementary means of promoting innovation, technical progress and economic growth to the benefit of consumers and the whole economy. IPRs and competition are normally regarded as areas with conflicting objectives. The reason is that IPRs, by designating boundaries within which competitors may exercise monopolies over their innovation, appear to be against the principles of competitive market and level playing fields sought by competition rules, in particular the restrictions on horizontal and vertical restraints, or on the abuse of dominant positions. IP Laws are monopolistic in nature. They guarantee an exclusive right to the creators and owners of work which are a result of human intellectual creativity. Also they prevent commercial exploitation of the innovation by others. This legal monopoly may, depending on the unavailability of substitutes in the relevant market, lead to market power and even monopoly as defined under competition law. It is an advantage granted to the owner over the rest of the industry or sector. When this advantage or dominant position is abused, it creates a conflict between IPR and competition law.5
The detailed analysis of both the streams- IPRs and competition law direct us to the conclusion that both have overlapping issues which can’t be dealt in isolation. Despite both are in essence poles apart, however, their goals and objectives are converging than conflicting as understood in general parlance. Despite the fact that there are intricacies and sensitive issues, both the streams have managed to reconcile and strike a middle path in order to ensure the fulfillment of the ultimate objective of common good and protection of consumer welfare.
4 Jayashree Watal, Intellectual Property Rights in WTO and Developing Countries, 2001 (Oxford University Press) , at 1-5. 5 Adv. Vishnu S, Conflict Between Competition Law And Intellectual Property Rights (September 13, 2016) http://www.articlesbase.com/intellectual-property-articles/conflict-between-competition-law-and-intellectual- property-rights- 3106578.html#ixzz0yxtT0wdR RESEARCH METHODOLOGY
This research is descriptive and analytical in nature. Secondary and Electronic resources have been largely used to gather information and data about the topic.
Books and other reference as guided by Faculty of the subject and Library staff has been primarily helpful in giving this project a firm structure. Websites, dictionaries and articles have also been referred.
OBJECTIVES
The objective of this project is to study the intersection and clash of Competition law and IPRs. I mainly aim at studying the position of such clash in India under provisions of Indian Competition Act, 2002 and under the judicial precedents. I also intend to look in the principle applicable in other jurisdictions. It mainly includes studying the position in United States, European Union and under TRIPS. I have aim at studying the emerging jurisprudence on the topic in developing countries. BIBLIOGRAPHY To Promote Innovation: The Proper Balance of Competition and Patent Law and Policy, Federal Trade Commission, October 2003, p. 3. Dutch Competition Authority (NMA) report, Is de Mededingingswet ICTproof? May 2002, p. 23. Cotter T.F., “Intellectual Property and the Essential Facilities Doctrine”, 44 Antitrust Bulletin 1, 1999, p.227. Jayashree Watal, Intellectual Property Rights in WTO and Developing Countries, 2001 (Oxford University Press), at 1-5. Adv. Vishnu S, Conflict Between Competition Law And Intellectual Property Rights (September 13, 2016) http://www.articlesbase.com/intellectual-property-articles/conflict- between-competition-law-and-intellectual-property-rights- 3106578.html#ixzz0yxtT0wdR
