CONTENTS

Page No.
INTRODUCTION
CHAPTER : I EVOLUTION, CONCEPT AND JUSTIFICATION
FOR THE DEVELOPMENT OF COMPETITION
LAW IN INDIA ..1-58
1.1 General Conception of Competition Law ..1
1.1.1 Meaning ..1
1.1.2 Competition Policy, Competition Law
and Competitiveness .. 2
1.1.3 Types of Competition .. 4
1.1.4 Necessity of Competition Law .. 7
1.1.5 Goals of Competition .. 10
(a) Classical goals .. 11
(b) Specific goals .. 11
1.1.6 Hurdles to Fair Competition .. 14

1.1.6.1 Anti-competitive Agreements .. 14

1.1.6.2 Abuse of Dominant Position .. 17

1.1.6.3 Combinations (Mergers and acquisitions) .. 18

1.2 Competition Law – International Perspective .. 19
1.2.1 Sherman Act, 1890 .. 22
1.2.2 Clayton Act, 1914 .. 24
1.2.3 Federal Trade Commission Act, 1914 .. 25
1.2.4 Celler-Kefauver Act, 1950 .. 25
1.2.5 The U.K. Competition Act, 1998 .. 26
1.2.6 World Trade Organization Obligations .. 26
1.2.7 Trade Related Aspects of Intellectual Property
Rights .. 27
1.3 Competition Law-Indian Perspective .. 28
1.3.1 Monopolies Inquiry Committee .. 28

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 1.3.2 High-Powered Expert Committee on Companies
and MRTP Act .. 30
1.3.3 Economic Reforms and Its Impact .. 32
1.3.4 High Level Committee on Competition Policy
and Law .. 32
1.3.5 Salient Features of Indian competition Act, 2002 .. 34
1.3.5.1 Anticompetitive Agreements .. 36
1.3.5.1.1 General .. 36
1.3.5.1.2 Appreciable Adverse Effect .. 37
1.3.5.2 Abuse of dominant Position .. 44
1.3.5.3 Remedies and Leniency .. 49
1.3.5.4 Regulation of Combination .. 50
1.3.5.5 Extra Territoriality .. 52
1.3.5.6 Exemptions .. 53
1.3.6 The Background and Salient Features of
2007-Amendments .. 54
1.3.7 The Background and Salient Features of
2009-Amendments .. 56

CHAPTER : II INTERFACING ISSUES BETWEEN AND COMPETITION

LAW INTELLECTUAL PROPERTY RIGHTS .. 59-88
2.1 Meaning of the Interface .. 59
2.2 Competition Law and Competition Policy .. 59
2.3 IP Laws and IP Policy .. 60
2.4 Functional Aspects of Intellectual Property and
Competition Law ..61
2.4.1 Rationale for IPRs Protection: .. 62
(i) Incentive to Invent .. 62
(ii) To Encourage Disclosure .. 62
(iii) Commercialization of Technology .. 62
(iv)To Increase Dynamic Efficiency .. 63

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2.4.2 Rationale for Competition Law Regulation .. 63
2.4.3 IPRs Standards as Competition Regulation .. 64
2.4.4 Regulation of IPRs through Competition Law .. 64
2.4.4.1 Competition Concerns in Exclusionary
Licensing Agreements .. 65
2.4.4.1.1 Per se Rule .. 67
2.4.4.1.2 Rule of Reason .. 68
2.4.4.2 Anti-competitive Dimensions of Licensing
Arrangements .. 68
2.4.4.2.1 Exclusivity .. 68
2.4.4.2.2 Tying Restrictions .. 69
2.4.4.2.3 Grant Back .. 70
2.4.4.2.4 Royalty Rates .. 71
2.4.4.2.5 Territorial Restraints .. 72
2.4.4.2.6 Field of Use Restriction .. 72
2.4.4.2.7 Patent Pools .. 73
2.4.4.2.8 Cross Licensing .. 74
2.4.4.3 IPRs and the Abuse of a Dominant Position .. 74
2.4.4.4 IPRs as an Element of Mergers and
Cooperative Arrangements .. 76
(a) Merger Control .. 76
(b) Cooperative Arrangements Between
IPR Holders .. 77
2.4.4.5 Refusal to Deal .. 78
2.4.4.6 Compulsory Licensing .. 79
2.4.4.7 Parallel Import ..82
2.4.4.8 Transfer of Technology .. 86
2.4.4.8.1 Acquisition of Skills and know-how .. 86
2.4.4.8.2 Access to document embodied
knowledge and licensing .. 87
2.4.4.8.3 Acquisition by Importation and
Business Partnership .. 88

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CHAPTER : III COMPARATIVE STUDY OF INTERFACING
JURISPRUDENCE .. 89-138
3.1 Evolution and Growth at Regional Level .. 89
3.1.1 European Union .. 89
3.1.2 Association of South East Asian Nations .. 93
3.1.3 East African Countries .. 96
3.2 United Kingdom .. 99
3.3 United States of America .. 102
3.3.1 Development of Anti-trust Law .. 102
3.3.2 Interface between Anti-trust Law and IPR .. 103
3.3.3 The Rule of Reason .. 105
3.3.4 Competition Advocacy in the USA .. 106
3.4 India .. 107
3.4.1 Anti-competitive Agreements .. 110
3.4.2 Abuse of Dominance .. 112
3.4.3 Combination Regulation .. 113
3.4.4 Competition Advocacy .. 114
3.4.5 Applications of Section 3 and IPRs .. 116
3.4.6 Penalty Provisions .. 119
3.4.7 Interface Analysis .. 119
3.4.7.1 Patent .. 124
3.4.7.2 Trademarks .. 128
3.4.7.3 Copyright .. 128
3.4.7.4 Patent, Design and Trademarks-
Commercial Intangibles .. 131
3.4.7.4.1Patent and Anti-competitive
Agreement .. 131
3.4.7.4.2 Marketing Intangibles .. 133
3. 4.7.5 Export of goods- Agreements is not
Anti-competitive .. 134
3.5 Essential Facilities Doctrine .. 135

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CHAPTER : IV ECONOMIC APPROACH OF THE INTERFACE .. 139-204

4.1 Intellectual Property Rights as Human Rights .. 140

4.2 The need of the Intellectual Property Protection .. 142
4.3 Intellectual Property as an Instrument of Development .. 143
4.4 Technology and Economic Growth .. 144
4.5 Growing Role of Intellectual Property Rights (IPRs) .. 144
4.6 The Role of IPRs in Promoting Socio-Economic
Development .. 146
4.7 An IP System as a Part of the Basic Infrastructure .. 149
4.8 Economic Analysis of (Intellectual) Property Rights .. 150
4.8.1 Property Rights and Efficiency .. 150
4.8.1.1 Efficiency .. 151
4.8.1.2 Property Rights .. 153
4.8.1.2.1 To maintain peace and order .. 153
4.8.1.2.2 To assign decision rights .. 153
4.8.1.2.3 To reward investment .. 154
4.8.1.2.4 To favour the diffusion of information .. 154
4.8.2 Application to IPRs .. 156
4.8.2.1 Patents .. 156
4.8.2.2 Copyrights .. 165
4.8.2.3 Trademarks .. 168
4.8.3 IPRs and Competition Law: An Economic
Analysis .. 172
4.8.3.1 The Argument for Independence .. 172
4.8.3.2 Applications and Specific issues .. 177
4.8.3.2.1 Patents .. 178
A. Mergers .. 179
B. Licensing .. 180
(i) Cross-Licensing .. 182
(ii) Patent Pools .. 186
(iii) Settlements .. 188
(iv) Grant Backs .. 189
(v) Compulsory Licensing .. 194
(a) Refusal to License .. 194
(b) Conditions of the compulsory
license .. 196
(c) Extending the legal patent
‘monopoly’ beyond the life of
the patent .. 197
4.8.3.2.2 Copyrights .. 199
4.8.3.2.3 Trademarks .. 202

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CHAPTER : V TRIPS AND THE INTERFACE .. 205-232
5.1 Need of a Competition Agreement under TRIPs Agreement .. 205
5.2 Need of an International Discipline on Competition Law .. 207
5.3 TRIPs and Competition Issues .. 210
5.4 The Related Provisions Under TRIPs .. 212
5.4.1 ARTICLE 7 .. 212
5.4.2 ARTICLE 8.2 .. 213
5.4.3 ARTICLE 40 .. 214
5.4.4 ARTICLE 6 .. 220
5.4.5 ARTICLE 31 .. 222
5.5 Indian Scenario of the Interface: .. 224
5.5.1 Domestic Legislation .. 227
5.5.2 International Fora .. 230
CONCLUSION AND SUGGESTIONS .. 233-239
BIBLIOGRAPHY .. 240-251

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 LIST OF CASES

CASES Page No.

Armstrong Vs Motorola Inco. 374 F 2d : 73

Automatic Radio Manufacturing Co. Inc. v. Hazeltine Research Inc. 339 US 827 : 125

Bement v. Nationla Harrow o 186 US 70 : 124

Berkey Photo, Inc. Vs East may Kodak Co. 603 F 2d 263 (2nd Cir, 1979) : 136

Boosey & Hawkes Vs Walt Disney Co. 145 F 3d 48 : 73

Brownell Vs Ketchmana Wire & Mfg. Co. 211 F 2d 121 : 72

Centrafarm v. Winthrop (1974) ECR 1183 : 128

Centrafram v. Sterling Drug (1947) ECR 1147, (1974) 2 CMLR 480 : 124

CNL-SUCAL v. HAG GE AG (1990)] 1 ECR 3711 : 128

Constenand Grundig v. Commission , 1966 : 134

Continental Paper Bag Co. Vs Eastern Paper Bag Co. 210 U.S. 405, 429 (1908) : 79

Daiichi Sankyo Co. Ltd : 114

Dr. Vallal Peruman v. Godfrey Phillips (India) Ltd. (1995) 16 CLA 201. : 112

GoHschalk vs Benson Decision : 164

Hartford Empire DCo. Vs U. S. (1945) 323 : 73

Henry v. A.B. Dick Company 224 US 1 (1912) : 125, 126

Hoffmann-Lal Rochev. Centrafarm (1978) ECR 1139 : 128

Inter-state Circuit Inc. V. United States, : 130

Jefferson Parish Hosp. Dist. No.2 Vs Hyde (1984) 466 US 2. : 70

Jefferson Parish Hospital 466 US 2 (1982) : 41

 List of Cases

Manju Bhardwaj v. Zee Telefilms Ltd (1996) 20 CLA 229 : 112

Mogul Steamship Co. v. McGregor 1892 AC 25 : 23

Musik-Vertrieb Membran v. GEMA (1981) ECR 147 : 129

Northern Pacific Railway Co. et al. v. United States, 356 US 1 (1958) : 41

Northern Pacific Railway Co. Vs United States (1958) 78 Sct 5/4 : 68

Parke Davis & Co. v. Probel and Contrafarm (1968) ECR 55] : 124

Quality king Distributors, Inc. Vs L, Anza, Research International,

Inc. 118 Sct. 1125 (March. 9, 1998) : 83

Ravenseft Properties Ltd.’s Application (1977) All ER 47” : 123

SA Companies v. Coditel (1980) ECR 881 : 129

Silhouette International Schmied GmbH & Co vs. Hartlauer

Handelsgesellschaft mbH. : 83

Smith v. Nothern Mich. Hospitals 528 F. Supp. 644 (W.D Mich 1981) : 121

Standard Oil Co. of New Jersey v. United States, 221 U.S.1 (1911) : 105

Standard Oil Company v. United States 221 US 1 : 23

Tata Engineering and Locomotive Co. v. Registrar of Restrictive Trade Practices,

(1977) 47 Com. Cas. 520 (SC) : 42

Timken Rollerr Bearing Co. Vs United States (1951) 341 Us 593 : 72

U.S. v. E.I. Dupont de Nemours & Co. 351 US 377 : 121

U.S. v. Grinnell Corp. 384 US 563 (1966) : 125

United Brands Co. and United Brands Continental BV v. Commission of the

European Communities (1978) 1 CMLR 429 See paragraphs 163,191,202,

203, 294 : 42, 45

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 List of Cases

United Brands v. Commission [1978] ECR 2017. : 90

United States v Terminal Railboard Association, (1985) 472 US 585. : 135-136

United States v. Aluminum Co. of America : 9

United States v. E.I. du Pont de Neumours and Co. 351 US 377 (1956) : 47

United States v. General Electric Co. 272 US 576 : 132

United States v. General Electric Company et al 272 US 476 (1926) : 125

United States v. General Electric Company, 272 US 476 : 122

United States v. General Electrical Company et al. 272 US 476 : 120

United States v. General Electronic Company 272 US 476 : 127

United States v. United Shoe Machinery Co. 247 US 32 : 127

United States v. United States Gypsum Co. 333 Us 36 : 127

United States v. United States Gypsum Company et al, 333 US 364 : 131,133

United States vs. United Shoe Machinery Company 247 US 32 (1918) : 125

US v. Microsoft 253 F.3d 34 (D.C. Cir 2001) : 125, 126

Vandenhoeck v. Commissioner 4TC 125, 1944 U.S. Tax Ct. Lexis 47 : 121

Volvo case, Case 238/87, Volvo, 1998 E.C.R 6211 : 137

Wood Pulp case : 99

Zenith Radio Corp. Vs Hazeltine Research Inc. (1969) 395 US 100 (135-136) : 71

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 LIST OF ABBREVIATIONS

ASEAN : Association of South East Asian Nations

CA, 2007 : Competition Act, 2007

CA, 2009 : Competition Act, 2009

CCI : Competition Commission of India

CISAC : Confederation of International Societies of Authors and

Composers

CRB : Competition Regulatory Bodies

DC : Directorate General of Competition

DOJ : Department of Justice

e.g. : example

EAC : East African Countries

EC : European Community

ECJ : European Court of Justice

EEC : European Economic Community

EU : European Union

FDI : Foreign Direct Investment

FII : Foreign Institutional Investment

FTC : Federal Trade Commission

GATT : General Agreement in Tariffs and Trade

GI : Geographical Indications

IP : Intellectual Property

IPCRC : Intellectual Property and Competition Review Commission

IPRs : Intellectual Property Rights

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LDC : Least Developed Countries

MNC : Multi-National Corporations

MRTP : Monopolise and Restricted Trade Practices

OECD : Organisation for Economic Development and Cooperation

R&D : Research and Development

TEC : Treaty establishing European Community

TPA : Trade Practices Act

TRIPS : Trade Related Aspects of Intellectual Properties

UN : United Nations

UNCTAD : United Nations Conference on Trade and Development

CTIP Act : Unfair Trade and Industrial Property Act

USA : United States of America

USTR : United States Trade Representative

WHO : World Health Organisation

WIPO : World Intellectual Property Organisation

WTO : World Trade Organisation

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