Intellectual property is a monopoly right granted by law, and is a powerful means of competition. Generally, anti-monopoly law does not apply to intellectual property.

As intellectual property plays more and more important role in economy and social lives, antitrust issues in the field of intellectual property rights are also increasingly prominent.

When intellectual property owners use the monopoly intellectual property rights to eliminate and to restrict competition, the monopoly intellectual property rights changed into illegal monopolistic behavior from the legal intellectual property rights. To regulate intellectual property rights abuses became an important part of anti-monopoly law system.

According to article 55 of the "Anti-monopoly Law" passed in August 2007, “Anti-monopoly Law" applies to abusing of intellectual property rights to eliminate or restrict competition. However, the "Anti-monopoly Law" is too simple, and not implementable.

On April 7, 2015, the State Administration for Industry and Commerce (the“AIC”) issued the “Provisions on the Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrain Competition” (the "Provisions"), which shall become effective as of August 1, 2015.

The "Provisions" mainly cover six aspects: First, defines abusing of intellectual property rights monopoly behavior to eliminate or restrict competition and relevant market; Second, prohibits using intellectual property rights to reach monopoly agreements, and application of the "safe harbor rules"; Third, prohibits operators with a dominant market status from abusing its dominant market position in the process of exercising intellectual property rights, and specific abuse prohibitive provisions; Fourth, patent pool monopoly and standard formulation and implementation; Fifth, clarifies the intellectual property analysis principles and framework for the AIC’s anti-monopoly enforcement; Sixth, the punishment and penalties for violations.

The "Provisions” filled the blank for anti-monopoly law regulation in the field of intellectual property legislation, aims to balance the owner of the intellectual property rights and the legitimate rights and interests of the parties involved, to promote innovation and competition in the market.

Introduction of the “Provisions on the Prohibition of the Abuse of Intellectual Property Rights to Exclude or Restrain Competition” .pdf