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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 rights
endangers competition while competition
law engenders competition but Anyone
who has seen a steam
engine, however, knows that water and fire
combined in the right way can lead to
positive 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
TRIPS
 Article 8(2)
 Article 40
      Part I
      Part II
“The mere adoption of a competition law is a
necessary but not sufficient condition for it to be
part of market reform. Just as ecological
conditions determine the ability of a flower to
bloom, so do some preconditions affect the
ability 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 to
ensure the co-existence of competition
policy and intellectual property laws, they
need not overlook the fact that the
objectives of the two policies, though
complementary, can also be conflicting, in
which case there could be harm to society
in 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.
Thank You
  ANB Presentation

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Interface between intellectual property rights and competition law

  • 1. 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
  • 2. Prima facie Intellectual property rights endangers competition while competition law engenders competition but Anyone who has seen a steam engine, however, knows that water and fire combined in the right way can lead to positive results.
  • 3. 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.
  • 4. 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.
  • 5. Competition law and IPR Conventions  The Paris Convention Article 5A – Failure to work Public Interest  The Berne Convention Article 9(2) – three step test
  • 6. TRIPS  Article 8(2)  Article 40 Part I Part II
  • 7. “The mere adoption of a competition law is a necessary but not sufficient condition for it to be part of market reform. Just as ecological conditions determine the ability of a flower to bloom, so do some preconditions affect the ability to apply a competition law effectively” - Gal
  • 8. 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.
  • 9. In conclusion, while authorities need to ensure the co-existence of competition policy and intellectual property laws, they need not overlook the fact that the objectives of the two policies, though complementary, can also be conflicting, in which case there could be harm to society in terms of reduced welfare.
  • 10. 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.
  • 11. Thank You ANB Presentation