Interface between intellectual property rights and competition law
Interface between Intellectual Property Rights and Competition Law: The Role of TRIPS and Relevance to Developing Countries Dr. Mithilesh Narayan Bhatt Post-Doctoral Fellow, ICSSR, New Delhi Anirudh Narain Bhatt Ist yr. LLM (Business Law), NLSIU, Bangalore
Prima facie Intellectual property rightsendangers competition while competitionlaw engenders competition but Anyonewho has seen a steamengine, however, knows that water and firecombined in the right way can lead topositive results.
Paper Perspective Relevance and interface of competition law to international issue of IPR and demonstrate how competition law internationally has come to function as an indispensable instrument to balance IPR. Discuss the role of competition policy in TRIPS with relevance to developing nations.
IPRs and Competition Law:Interface Abuse of monopoly pricing, especially in developing countries. Competition law seeks to draw a line between permissible business strategies and abuse of IPRs.
Competition law and IPR Conventions The Paris Convention Article 5A – Failure to work Public Interest The Berne Convention Article 9(2) – three step test
“The mere adoption of a competition law is anecessary but not sufficient condition for it to bepart of market reform. Just as ecologicalconditions determine the ability of a flower tobloom, so do some preconditions affect theability to apply a competition law effectively” - Gal
Developing Countries Obstacles in front of these countries? - Internal obstacles - external obstacles Importance of competition law for these countries? - prevent those agreements which limit technology diffusion. - any positive effects of IPRs in these countries may be offset by restrictions on competition.
In conclusion, while authorities need toensure the co-existence of competitionpolicy and intellectual property laws, theyneed not overlook the fact that theobjectives of the two policies, thoughcomplementary, can also be conflicting, inwhich case there could be harm to societyin terms of reduced welfare.
Recommendations Establish and strengthen competition laws Consider the competition implications of various policies and regimes that determine market entry. Ensure adequate coordination among the competition law agency and other agencies. Use the flexibilities allowed by the TRIPS Agreement. Develop policies, including guidelines, to prevent and correct abuse in the acquisition and enforcement of IPRs. Prevent the granting of frivolous or low quality patents and patents with overly broad claims. Active role of government agencies.