1. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
THE RELATIONSHIP BETWEEN
COMPETITION LAWS AND
INTELLECTUAL
PROPERTY RIGHTS .
BY
ABISHEK RAMAN

2. Objectives of competition laws
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
•
•
•
•
I. To check anti-competitive practices
II. To prohibit abuse of dominant position
III. Regulation of combinations.
IV. To provide for the establishment of CCI, a quasijudicial body to
perform below mentioned duties:
1) Prevent practices having adverse impact on
competition
2) Promote and sustain competition in the market
3) Protect consumer interests at large
4) Ensure freedom of trade carried on by other
participants in the market and look into matters
connected therewith or incidental thereto.

3. Nature and intent of intellectual property
rights
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
• Intellectual Property Rights provide exclusive rights
to the holders to perform a productive or
commercial activity. But this does not
automatically include the right to exert restrictive
or monopoly power in a market.
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Intellectual property right is an exception to the
general rule promoting free competition. The
protection is not meant to continue even after the
objectives of Intellectual property right have been
achieved.

4. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• In cases where Intellectual property right is
unable to prevent the extension of such
power beyond the realm of the intended
protection, competition laws are capable of
playing this limiting role.
• Hence the attitude of competition law to
Intellectual property right is not hostile. It
acts in a complementary manner to ensure
that the inherent purpose of the rights is
not defeated.

5. Application of competition laws to IPR
CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• When the Intellectual property right owner
exceeds the essential function for which the right
is granted like the protection of innovators’
achievements against free-riders and protection of
the firm’s reputation and identity, competition
laws may curtail such abuse and restrict the owner
from such exercise of his rights.
• Therefore competition laws maybe applied in the
following areas with respect to IPR’s namely:
1) Extent of derived market power
2) Abuse of such market power
3) In Licensing agreements entered by the owners

6. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Section 3(1) of the competition act refers to Anticompetitive agreements, according to this act :
No enterprise or association of enterprises or
person or association of persons shall enter into
any agreement in respect of production, supply,
distribution, storage, acquisition or control of
goods or provision of services, which causes or is
likely to cause an appreciable adverse effect on
competition within India. Any agreement entered
into in contravention of the provisions contained
above shall be deemed to be void.
case law : kingfisher airlines vs. The competition
commission of India

7. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
Any agreement entered into between enterprises or associations of
enterprises or persons or associations of persons or between any
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
person and enterprise or practice carried on, or decision taken by, any
association of enterprises or association of persons, including cartels,
engaged in identical or similar trade of goods or provision of services,
which:
(a) directly or indirectly determines purchase or sale prices;
case law: Singhania & partners vs. Microsoft corp. pvt. ltd
(b) limits or controls production, supply, markets, technical
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
development, investment or provision of services;

8. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
(c) shares the market or source of production or
provision of services by way of allocation of
geographical area of market, or type of goods
or services, or number of customers in the
market or any other similar way;
(d) directly or indirectly results in bid rigging or
collusive bidding, shall be presumed to have an
appreciable adverse effect on competition.

9. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• the Competition Act, 2002 deals with the
applicability of such prohibition relating to anticompetitive agreements to IPRs through section
3(5), an express provision to the section which
provides that nothing contained in this section
shall restrict• (i)The right of any person to restrain any
infringement of, or to
impose “reasonable
conditions”, as may be necessary for protecting
any of his rights which have been or may be
conferred upon him under(a) The Copyright Act, 1957;
(b) The Patents Act, 1970;

10. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
(c) The Trade and Merchandise Marks Act, 1958 or the
Trade Marks Act, 1999;
(d) The Geographical Indications of Goods (Registration
and Protection) Act, 1999;
(e) The Designs Act, 2000;
(f ) The Semi- conductor Integrated Circuits Layout- Design
Act, 2000;
• (ii) The right of any person to export goods from India to
the extent to which the agreement relates exclusively to
the production, supply, distribution or control of goods or
provision of services for such export.

11. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• Section 3(5) of the Act declares that “reasonable
conditions as may be necessary for protecting” any
intellectual property right will not attract the
implications of section 3 of the competition act,
2002.
• The expression “reasonable conditions” has not
been defined or explained in the competition act. By
implication, unreasonable conditions that attach to
an intellectual property right will attract the
implications under section 3 of the act.

12. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
• The following are certain types of conditions or
arrangements involved in the arena of intellectual
property rights that are considered as unreasonable
or beyond the scope of the bundle of rights that
maybe derived from such intellectual property rights:
1) Tie-in arrangements
Tie-in arrangement is a type of such restrictive
practice wherein a licensee may be required to
acquire particular goods (unpatented materials e.g.
raw materials) solely from the patentee, thus
foreclosing the opportunities of other producers.
There could be an arrangement forbidding a licensee
to compete, or to handle goods which compete with
the licensor’s interest. Such arrangements are usually
considered to hinder the spirit of completion and
hence not allowed by the competition act.

13. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
2) Grant back provisions
A provision in the intellectual property licensing
agreement requiring the licensee to assign any
improvements or modifications made by it, back to the
licensor is referred to as a grant back provisions. These
provisions are not unlawful per se, however such
provisions attract complications when the rights
required to be granted back are far broader than the
rights originally licensed or when such practices are
generally against the norms of the industry in question.
Such a grant back provision may hinder the incentives
of licensee to innovate due to structure of such a
provision, and hence it would amount to violation of
competition laws.

14. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
3) Patent pooling
This happens when the firms in a manufacturing
industry decide to pool their patents and agree not to
grant licenses to third parties, at the same time fixing
quotas and prices. They may earn extraordinary profits
and keep new entrants out of the market. In particular,
if all the technology is locked in a few hands by a
pooling agreement, it will be difficult for outsiders to
compete. Patent pooling is a restrictive practice, which
will not constitute being a part of the bundle of rights
forming part of an intellectual property right.

15. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
4) Package licensing
A licensee may be coerced by the licensor to take
several licenses in intellectual property even though the
former may not need all of them. This sort of practices
are resorted by licensors to ensure that even their
lesser valued or in certain cases valueless, intellectual
properties derive monetary benefits. Section 84 (7) of
the Indian patents act, 1970, mentions that such type
of coercive package licensing is to be considered as an
anti-competitive practice.

16. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
5) Unreasonable regulations or conditions.
a) A condition imposing quality control on the licensed
patented product beyond those necessary for guaranteeing
the effectiveness of the licensed patent may be an anticompetitive practice.
b) Restricting the right of the licensee to sell the product of
the licensed intellectual property to persons other than
those designated by the licensor may be in violation of
competition laws.
c) A condition imposed on the licensee to employ or use staff
designated by the licensor is likely to be regarded as
anticompetitive.

17. CHENNAI
3rd Floor, ‘Creative Enclave’,
148-150, Luz Church Road,
Mylapore,
Chennai - 600 004.
Tel: +91 - 44 - 2498 4821
BANGALORE
Suite 920, Level 9,
Raheja Towers,
26-27, M G Road,
Bangalore - 560 001.
Tel: +91 - 80 - 6546 2400
COIMBATORE
BB1, Park Avenue,
# 48, Race Course Road,
Coimbatore - 641018.
Tel: +91 - 422 – 6552921
EMAIL
info@altacit.com
WEBSITE
www.altacit.com
Conclusion
Thus it can be observed that the relation between competition
laws and intellectual property rights with its intricacies and
ironies is here to stay. It’s amply clear that these two streams of
law are bound to converge and cannot be expected stay as
mutually exclusive subjects.
With the dramatic increase in trade and stronger economic ties
between nations, it is absolutely necessary for countries to
strengthen their legislative systems to ensure that they are
prepared to handle any impending crisis that may require them
to clearly distinguish the two streams of law without
compromising on any individual’s rights or public welfare as the
case may be.