26 September 2023

Competition law wins IP changes

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The Australian Competition and Consumer Commission (ACCC) has published a guide to recent changes to the competition law relating to intellectual property (IP) matters which come into effect on 13 September.

The new laws mean the certain types of IP-related conduct, such as price fixing, output restrictions, market sharing and bid rigging, are no longer exempt from the broader cartel prohibitions.

ACCC Commissioner, Stephen Ridgeway (pictured) said the guidelines were designed to explain the ACCC’s enforcement approach to IP rights.

He said subsection 51(3) of the Competition and Consumer Act was repealed after recommendations from the Harper Competition Policy Review and the Productivity Commission’s intellectual property arrangements inquiry.

“This change means that conduct relating to intellectual property rights will now be treated in the same way as other conduct under Australia’s competition law,” Mr Ridgeway said.

He said the repeal of the exemption had been recommended by multiple independent reviews over the past 20 years.

“Following the repeal, the ACCC will be able to address those rare instances where IP licensing arrangements may damage or hinder competition,” Mr Ridgeway said.

“However, we understand that most IP arrangements encourage competition and innovation, to the benefit of consumers, and this repeal will not change our approach to those arrangements.”

The ACCC’s 24-page Guide can be accessed at this PS News link.

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