scholarly journals The monopoly leverage theory and tying/ bundling arrangement in intellectual property rights transfer contracts

2019 ◽  
Vol 3 (3) ◽  
Author(s):  
Bui Thi Hang Nga
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Competitive Advantage ◽  
Market Power ◽  
Intellectual Property Rights ◽  
Competition Law ◽  
Monopoly Power ◽  
Competition Advantage ◽  
Monopoly Position ◽  
Rights Transfer

The exclusive essence and importance of intellectual property rights in production and business provide the owners with a competition advantage, even monopoly power, in the related market. To maximize profit and retain the monopoly position, owners tend to use intellectual property rights as a monopoly leverage to require the transferee to accept the tying arrangement as a condition for the transfer. Monopoly leveraging is defined as the use of monopoly power in one market as leverage to obtain a competitive advantage in a second market. From the perspective of competition law, the theory of leverage is used to explain the cases of businesses abusing market power (monopoly) obtained from intellectual property rights to limit competition. This paper addresses the utilization of monopoly leverage theory to explain the owepractices of tying arrangement in intellectual property rights transfer contracts.

scholarly journals Applying the rule of per se and rule of reason to assess the violation of the Competition Law by the IPRs owners

2020 ◽  
Vol 4 (2) ◽  
pp. First
Author(s):  
Bui Thi-Hang Nga
Keyword(s):  
Intellectual Property ◽  
Competitive Advantage ◽  
Market Power ◽  
Intellectual Property Rights ◽  
Competition Law ◽  
Rule Of Reason ◽  
Per Se ◽  
The Right ◽  
Exclusive Right ◽  
Monopoly Position

With the nature of practically irreplaceable and the monopoly of the protection documents, the law has given the intellectual property rights (IPRs) owner a competitive advantage, as well as a market power. As a result, to extent the market power and create a monopoly position to maximize profitability, IPRs owners tend to abuse IPRs to limit competition. Although the exclusive right to IPRs is a legal monopoly comes from protection documents, it does not mean that the owner has the right to abuse this monopoly to limit competition. This is because such behavior is not considered an exception under the Competition Law and shall be prohibited in case the satisfaction of provision violating conditions of the Competition Law. However, in order to balance the interests of related subjects, in assessment of the Competition Law violations of IPRs abuses, the laws of countries fully recognized and applied the rule of reason instead of per ser as Competition Law violations in general. The article aims to analyze and explain the purpose of the application of the rule of reason when assessing the violation of the Competition Law of IPRs owner and when using the per se, in respect of the legal monopoly of the IPRs subjects. The paper then provides proposals to complete the Vietnamese Competition Law which governs the abuse of IPRs owners.

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