Application of competition law and the law relating to unfair competition
The acquisition of an EPUE may be impermissible under competition law only in special exceptional cases. This conceivably might hold true where a recognizable strategy of obstruction (Art 102 TFEU) is pursued by a company holding a dominant position with the aim of walling in competitors, without such patent proprietor having any intention of using the subject matter of patent protection himself. Also conceivably falling under the heading of inadmissible obstruction is the acquisition of a large number of patents by which the acquiring entity pursues the aim not of exploiting them but instead of using such acquisition to its own competitive advantage. The acquisition of such IP rights used merely for blockading purposes may qualify as part of the aforementioned strategy of obstruction and as such violate Art 102 TFEU. This may make it impermissible to invoke the patent: the competitor affected can raise the objection of abuse of a dominant position, which the UPC is in the position to consider (Art 32(1)(a) UPCA). As a general rule, such violation does not give rise to an obligation of cancellation because, if held by others actually using it themselves, it may turn out that the patent is no longer ‘flawed’.