Managing Intellectual Property

Avoid competition problems in China

01 July 2008

China's long-awaited Anti-Monopoly law comes into effect on August 1, but its impact on IP owners is far from certain, explain Kirstie Nicholson and Zirou Liu

Intellectual property grants a monopoly that enables the right holder to prevent others from manufacturing, distributing, selling or using products that make use of the relevant intellectual property. Competition law, including China's Anti-Monopoly Law (AML), on the other hand, aims to prevent a monopoly situation and to safeguard fair market competition. However, IP and competition laws do also have certain common aims, including the promotion of innovation and the protection of consumers. It is therefore possible for IP rights to exist within the permitted boundaries of competition laws; however, where actions are taken that go beyond the legitimate protection of IP, competition concerns may arise....



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