Protection of Intellectual Property and Competition Contribute to Innovative Development

13 december 2017

Issues of interrelation between the anti-monopoly policy and intellectual property protection were discussed at the Analytical Center.

Currently, on the initiative of the FAS of Russia, 2 draft bills extending the regulation capabilities in the sphere of intellectual property have been introduced to the government. The first one is about amending Article 1360 of the Civil Code and extending the grounds for the usage of compulsory licensing mechanism by the Government of the Russian Federation. "Now, this article provides the government with the right to make decisions for the purpose of defense and security. This refers to the so-called issue of a compulsory license," explained Artem Molchanov, Head of the Legal Department of FAS of Russia. "We clarify these provisions and say that protected interests mean, among other things, "life and health of citizens."

The second draft bill is related to amending the Competition Law and canceling anti-monopoly immunities for the sphere of intellectual property. "The amendments consist in exclusion from Articles 10 and 11 of the law of the provisions eliminating application of the anti-monopoly laws to the abuse of a dominant position using intellectual property and to agreements related to providing and disposing intellectual property.

The draft bills have been developed by the FAS separately and were not introduced as a single package, and now are undergoing parallel reconciliation.

Representatives of the business community, in particular of the pharmaceutical and IT industries, point at high risks of foreign companies’ leaving the Russian market for other jurisdictions in case of canceling anti-monopoly immunities in the sphere of intellectual property and extension of the grounds for forced issue of licenses.

International experience demonstrated the need of fine adjustment in the sphere of intellectual property, when a regulator is not prohibited from intervening into the sphere of intellectual property, but its specific character is taken into account.

It is important to understand that both the issues of intellectual property protection and the issues of competition protection have similar tasks related to technological and innovative development and are focused on maximum satisfaction of consumer interests. A determining issue is the issue of the extent and procedure of government intervention into the sphere of intellectual property for the public benefit in order not to allow significant decline in motivation for the innovative activity.