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INTERFACE BETWEEN IP AND COMPETITION LAW - ASHUTOSH KUMAR, SENIOR PARTNER, SINGH & SINGH LAW FIRM LLP


Report on the Revision of the Patents Law (“Ayyangar Committee Report”) 1959 “200. I have set out these facts to emphasise that monopolistic combinations and restrictive trade practices are a universal feature of capitalistic economy and that special legislation is needed to protect the public from these practices. The rule enacted in Section 27 of the Indian Contract Act regarding contracts in restraint of trade is much too weak to touch even the fringe of the problem.” “201. I am however, not dealing with this matter in any detail for two reasons; first, though patents might sometimes form a convenient nuclei on which monopolistic combinations (and restrictive practices which are the concomitant of combinations and to effectuate which the combination might come into existence) are based, the problem cannot be solved by any amendment of the Patents law but only by dealing with it comprehensively so as to touch the manifold forms which these combinations might assume and in which they could operate. This has been the manner in which legislation in other countries has tackled the problem and with reason. Secondly, any solution that is offered must be related to the precise manifestations of the combination or restraint which obtains in the country at present. There are no materials available on the basis of which this information could be gathered. It does not need any argument to establish, that without an evaluation of the evil, its nature and extent, the remedy to counter it cannot be devised.”

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