{"id":3242,"date":"2018-02-02T08:40:46","date_gmt":"2018-02-02T08:40:46","guid":{"rendered":""},"modified":"2019-08-19T09:19:20","modified_gmt":"2019-08-19T09:19:20","slug":"intellectual-property-rights","status":"publish","type":"post","link":"https:\/\/www.lawteacher.net\/free-law-essays\/copyright-law\/intellectual-property-rights.php","title":{"rendered":"Intellectual Property Rights"},"content":{"rendered":"

OUTLINE OF RESEARCH<\/h3>\n

Intellectual property rights are<\/p>\n

those exclusive rights granted to the owners there in to behave in a particular<\/p>\n

manner with a view to economically exploiting the result of their intellectual<\/p>\n

labour. They include patents, designs, registered as well as unregistered, copy<\/p>\n

rights, including computer software, trademarks, secret and substantial know<\/p>\n

how and other analogous rights. Competition law, in common parlance, seeks to<\/p>\n

take away monopolistic rights with a view to protect competition and maximise consumer<\/p>\n

welfare. It is therefore no surprise that historically, these two areas of law<\/p>\n

have regarded each other with mutual suspicion and there has existed tacit<\/p>\n

unrest.<\/p>\n

However, the development of case law and policy over the decades shows<\/p>\n

that this view is overly naive and probably wrong. It becomes important to<\/p>\n

understand that even though intellectual property rights confer exclusive use,<\/p>\n

it is not the same as an economic monopoly. It is merely a film of immunity<\/p>\n

from competing undertakings. The real issue for consideration is whether<\/p>\n

intellectual property and competition law are fundamentally contradictory to<\/p>\n

one another or whether, in practice, they are just different means to achieve<\/p>\n

the same goals? In the 20th<\/sup> century, the courts seemed to hold the<\/p>\n

opinion that intellectual property sought to take away what competition law strived<\/p>\n

to achieve, in that they were mutually incompatible.<\/p>\n

Today, it is an accepted<\/p>\n

school of thought that intellectual property and competition law strive to<\/p>\n

achieve common goals promoting interests of the consumers, effective<\/p>\n

allocation of resources and most importantly, promoting innovation. In my<\/p>\n

analysis of the trend in the relationship between intellectual property and<\/p>\n

competition law, I will also draw reference to various Department of Justice (DOJ)<\/p>\n

and Federal Trade Commission (FTC) documents which showcase a clear shift in<\/p>\n

attitude from a time when intellectual property was perceived by competition<\/p>\n

lawyers to impede competition to now, when intellectual property agreements are<\/p>\n

expected to boost economic efficiency and in fact are considered pro-competitive.<\/p>\n

A holder of an intellectual<\/p>\n

property may either exploit the property himself, or he may grant licences to<\/p>\n

another to enable him to do so. There may be many reasons as to why he chooses<\/p>\n

to do so. While licensing his property, the owner may also impose various other<\/p>\n

restrictions such as quality of goods produced, quantity of goods produced or<\/p>\n

the price at which they are sold, geographical area, etc. This leads me to<\/p>\n

consider the relationship between intellectual property licensing agreements and<\/p>\n

article 81 of the EC treaty. It can be seen that the commission’s policy on<\/p>\n

intellectual property licensing agreements has evolved and developed<\/p>\n

significantly over the last few decades.<\/p>\n

Initially, in the 1960s, a very<\/p>\n

permissive approach was adopted. This is illustrated by the 1962 Notice on<\/p>\n

Patent Licensing Agreements [24 Dec. 1962 JO 2922\/62] where even exclusive<\/p>\n

patent licensing was not considered to infringe Article 81(1) as long as the<\/p>\n

restrictions were within the scope of the patent. As time passed, the stand of<\/p>\n

the commission hardened and assumed a more formalistic and interventionist<\/p>\n

approach, moving towards the position that all exclusive licences, unless de<\/p>\n

minimus, infringed Article 81. The position was essentially that any<\/p>\n

intellectual property licence which went beyond simply exploiting the property<\/p>\n

against payment of royalty was a violation of art 81(1).<\/p>\n

Momentous to this<\/p>\n

change was the decision of the ECJ in Consten & Grundig (Consten<\/p>\n

& Grundig v. Commission [1966] ECR 229) where the court drew an almost<\/p>\n

unnatural distinction between the ‘existence’ and ‘exercise’ of an intellectual<\/p>\n

property right. This distinction between grant of and exercise of the right can<\/p>\n

be further seen in Deutsche Grammophon (Deutsche Grammophon<\/p>\n

Gesellschaft v. Metro-SB_Grobmarkte GmbH [1971] ECR 487). Even though, in<\/p>\n

the real world, non-exclusive licences were commercially non viable, throughout<\/p>\n

the 1970s the commission ruled in a string of decisions that exclusive licenses<\/p>\n

were restrictive of competition and were caught by the provisions of Article<\/p>\n

81(1). Although in Nungesser v. Commission (Case 258\/78 [1982] ECR 2015)<\/p>\n

(also referred to as maize seeds case) the ECJ held that exclusive licence did<\/p>\n

not ipso facto infringe Article 81(1), in that it drew a difference<\/p>\n

between an ‘open exclusive agreement’ and an exclusive licence conferring<\/p>\n

absolute territorial protection. In the years following the judgement, the ECJ<\/p>\n

adopted a very narrow approach as to it’s application.<\/p>\n

The reluctance on the<\/p>\n

part of the commission to apply the maize seed doctrine can be seen in various<\/p>\n

later judgements of Velcro\/Aplix(OJ [1985] L 233\/22); Tetra Pack I (OJ [1988] L 272\/27); Delta Chemie\/DDD Ltd (OJ [1988] L 309\/34). The<\/p>\n

introduction of the new Technology Transfer Block Exemption, Regulation 772\/2004 accompanied by the Technology Transfer Guidelines has signalled a more practical<\/p>\n

and economic approach to these types of agreements.<\/p>\n

The law of intellectual property<\/p>\n

confers exclusive rights. Article 82, simply put, prohibits the abuse of a<\/p>\n

dominant position by any dominant undertaking. The question therefore remains<\/p>\n

whether Article 82 can be used to limit the exclusive rights granted by the<\/p>\n

intellectual property in the case of a dominant undertaking. The ECJ, through<\/p>\n

various judgements, has made it quite clear that it is not the ownership of the<\/p>\n

intellectual property but it’s improper exercise which can be questioned under<\/p>\n

Article 82.<\/p>\n

Much debated over the years is the question as to what extent the<\/p>\n

owner of an intellectual property can be compelled into licensing it to a third<\/p>\n

party. In the Renault case (1988 ECR 6039) and Volvo v. Erik Veng (1988<\/p>\n

ECR 6211), the courts took a rather orthodox view on the matter. However, in<\/p>\n

the Magill case (OJ 1989 L 78\/43), Oscar Bronner (Case C 7\/97<\/p>\n

1998 ECR I – 7791) and IMS Health (Case C 418\/01 2004 ECR I – 5039), the<\/p>\n

court assumed a much less orthodox stand. I will discuss the meaning and<\/p>\n

consequence of these decisions in detail in the course of my research essay.<\/p>\n

My research essay will therefore<\/p>\n

attempt to establish a trend in the way in which the Community Courts and the Commission<\/p>\n

have regarded the relationship between Intellectual Property Rights and<\/p>\n

Competition Law under two broad headings,<\/p>\n

(a) Intellectual Property Rights<\/p>\n

and Article 81 (b) Intellectual Property Rights and Article 82.<\/p>\n

ANNOTATED BIBLIOGRAPHY<\/h3>\n

Richard Whish, Competition Law (6th<\/sup> edn., Oxford \ufffdUniversity Press), chapter 19<\/p>\n

This leading practitioner text<\/p>\n

book is a comprehensive guide for EC Competition Law and useful as a source of<\/p>\n

reference for the two main issues raised in my outline. It is up-to-date and<\/p>\n

excellently written with complicated concepts put forward in an easily<\/p>\n

understandable way.<\/p>\n

Alison Jones and Brenda Sufrin, Text,<\/p>\n

Cases, and Materials: EC Competition Law (3rd<\/sup> edn., Oxford<\/p>\n

University Press) Chapter 10<\/p>\n

This is an accomplished text that<\/p>\n

provides invaluable insight into the subject of European Competition law. It is<\/p>\n

a useful source of reference for the issues covered in my research essay. It<\/p>\n

contains a judicious balance of analysis, cases and materials. The cases are<\/p>\n

excellent with the right mix of facts, judgement and comments.<\/p>\n

Kirsty Middleton, Blackstone’s<\/p>\n

UK & EC Competition Documents (5th<\/sup> edn., Oxford<\/p>\n

University Press)<\/p>\n

This statute book covers all the<\/p>\n

relevant Notices and Guidelines I will be referring to in my research essay. It<\/p>\n

offers unparralled coverage with primary and secondary legislation and<\/p>\n

up-to-date material.<\/p>\n

FUTHER SOURCES<\/h3>\n

BOOKS<\/p>\n

S. D. Anderman and J.<\/p>\n

Kallaugher Technology Transfer and the New EU Competition Rules:<\/p>\n

Intellectual Property Licensing after the Modernisation (Oxford University<\/p>\n

Press, 2006)<\/p>\n

S. Anderson, EC<\/p>\n

Competition Law and Intellectual Property Rights (Clarendon Press, 1998)<\/p>\n

C. Bernard, The<\/p>\n

Substantive Law of the EU (Oxford University Press, 2004)<\/p>\n

L.Bently and B.<\/p>\n

Sherman, Intellectual Property Law 2nd<\/sup> edition (Oxford<\/p>\n

University Press, 2004)<\/p>\n

Korah, V., Intellectual<\/p>\n

Property Rights and the EC Competition Rules, (Hart Publishing, 2006)<\/p>\n

Govaere, I., The<\/p>\n

Use and Abuse of Intellectual Property Rights in the EC Law (Sweet &<\/p>\n

Maxwell, 1996)<\/p>\n

ARTICLES<\/p>\n

Dolmans, M.,and, Pilola,<\/p>\n

A., ‘The New Technology Transfer Block Exemption, A Welcome Reform After All’<\/p>\n

[2004] 27(3) World Competition 351<\/p>\n

L.Peeperkorn, ‘IP<\/p>\n

Licences and Competition Rules: Striking the Right Balance’ (2003) 26 World<\/p>\n

Competition 527, 527-28<\/p>\n

Venit, J., ‘In the Wake<\/p>\n

of Windsurfing: Patent Licensing in the Common Market’ [1986] Fordham Corp L<\/p>\n

Inst 517<\/p>\n

Cotter, T.F.,<\/p>\n

‘Intellectual Property and the Essential Facilities Doctrine’ [1999] Antitrust<\/p>\n

Bull 211<\/p>\n

Knoll\/Hille-Form XIIIth Report on Competition Policy (1983)<\/p>\n","protected":false},"excerpt":{"rendered":"

Intellectual property rights are those exclusive rights granted to the owners there in to behave in a particular manner<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[87],"class_list":["post-3242","post","type-post","status-publish","format-standard","hentry","category-free-law-essayscopyright-law","tag-eu-law"],"yoast_head":"\nIntellectual Property Rights | LawTeacher.net<\/title>\n<meta name=\"description\" content=\"Intellectual property rights are those exclusive rights granted to the owners there in to behave in a particular manner\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lawteacher.net\/free-law-essays\/copyright-law\/intellectual-property-rights.php\" \/>\n<meta property=\"og:locale\" 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