Avoid competition problems in China
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
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