Balancing competition and intellectual property rights

By Mihir B Kamdar and Akshay Puranik, Udwadia Udeshi & Argus Partners
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Conceptually, it would appear that in certain cases intellectual property rights (IPR) and competition/antitrust law cannot really coexist with each other. The law relating to IPR seeks to encourage innovation by allowing an owner monopolistic rights in the innovation whereas competition/antitrust law seeks in part to do away with monopolies.

Law in India

Due to this apparent conflict, lawmakers in different jurisdictions have attempted to achieve a balancing act between these two fields. India’s Competition Act, 2002, recognizes this apparent conflict and provides a window for IPR protection – although not a blanket exemption for all actions that may appear to be taken by enterprises in exercising their IPR.

Mihir Kamdar
Mihir Kamdar

So while the act applies when enterprises abuse their dominant position, an exception to the prohibition of anti-competitive agreements is provided where such agreements either (a) restrain any infringement of IPR or (b) impose such reasonable conditions as may be necessary for the protection of IPR.

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Udwadia Udeshi & Argus Partners is a full-service law firm with offices in Mumbai, Delhi, Bangalore, Kolkata and Chennai. Mihir B Kamdar is an associate partner and Akshay Puranik is an associate at the firm. The views expressed by the authors are personal and do not reflect the views of the firm.

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