PROVISIONS PROHIBITING ABUSE OF INTELLECTUAL PROPERTY RIGHTS TO EXCLUDE AND RESTRICT COMPETITION

  • 7 Aug 2023
  • China
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In June 2023, China's State Administration for Market Regulation (SAMR) issued the Provisions on Prohibiting the Abuse of Intellectual Property Rights to Exclude and Restrict Competition, to take effect on 1 August 2023.
Below are some extracts:
Article 1
These Regulations are formulated in accordance with the Anti-Monopoly Law of the People's Republic of China (Anti-Monopoly Law) to prevent and curb the abuse of intellectual property rights to exclude and restrict competition.
Article 3
The term "Abuse of Intellectual Property Rights to Eliminate or Restrict Competition" referred to in these Provisions means that business operators violate the provisions of the Antimonopoly Law by exercising intellectual property rights, entering into monopoly agreements, abusing dominant market positions and engaging in practices that have or may have the effect of eliminating or restricting competition.
Article 4
The State Administration for Market Regulation shall be in charge of the unified anti-monopoly law enforcement of the abuse of intellectual property rights to eliminate and restrict competition in accordance with the provisions of Article 13(1) of the Anti-Monopoly Law.
Article 9
An enterprise with a dominant market position shall not, in the course of exercising intellectual property rights, license intellectual property rights at unfairly high prices or sell products incorporating intellectual property rights so as to exclude or restrict competition.
Article 12
An enterprise holding a dominant market position shall not, without justifiable reasons, violate the trade practices and consumption habits of the industry or field to which it belongs, or ignore the functions of the goods, engage in the following tie-in sales in order to eliminate or restrict competition in the process of exercising intellectual property rights.