State Administration for Industry and Commerce Anti-monopoly and Anti-Unfair Competition Bureau Brief Introduction of Competition Enforcement of SAIC,China QI Shuanglin Mar,2015 The Anti-monopoly Regulation in China • The Anti-monopoly Law in China came into force in Aug,2008. • The anti-monopoly regulatory authorities in China: State Administration for Industry and Commerce(SAIC) Ministry of Commerce(MOFCOM) National Development and Reform Commission(NDRC) SAIC Performance • gradually increase the enforcement activities: up to now 47 cases, among which 21 closed announced the full-text formal decisions on our website http://www.saic.gov.cn/ SAIC Performance • released some follow-up regulations : Procedural Provisions Prohibiting Behavior Abusing Administrative Power to Eliminate or Restrict Competition Procedural Provision on Investigating Cases Involving Prohibition on Monopoly Agreements and the Abuse of Dominant Market Position Provision on the Prohibition of Monopolistic Agreements Provision on the Prohibition on the Abuse of a Dominant Market Position Provision on the Prohibition of the Anti-Competitive Abuse of Administrative Power Provisions to Prohibit Intellectual Property Abuse to Eliminate or Restrict Competition (Draft) Provisions to Prohibit Intellectual Property Abuse to Eliminate or Restrict Competition (Draft) (II) 1. Purpose and principles: protect the fair competition, promote the innovation, and prevent the business operators from abusing IP rights to eliminate or restrict competition. 2. Part two prohibits the monopoly agreement in use of IP rights. Safety Zone: - if not the behaviors listed in the AML - under certain market share or can be substitued - if not eliminate or restrict the competition Provisions to Prohibit Intellectual Property Abuse to Eliminate or Restrict Competition (Draft) (I) • Article 55 of AML: “This law is not applicable to undertakings who exercise their intellectual property rights in accordance with the laws and administrative regulations on intellectual property rights; however, this Law shall be applicable to the undertakings who eliminate or restrict market competition by abusing their intellectual property rights.” Provisions to Prohibit Intellectual Property Abuse to Eliminate or Restrict Competition (Draft) (III) 3. Part three states undertakings that hold a dominant position shall not abuse the position to eliminate or restrict competition when exercising their IP rights: - restrain a trading partner or licensee from challenging the validity of the IPR; - continue to exercise the IPR when the patent expired. - others Provisions to Prohibit Intellectual Property Abuse to Eliminate or Restrict Competition (Draft) (IV) 4. Part four regulates the behavior of patent pools or standard implementation to eliminate or restrict competition. 5. Part five specifies the factors that should be considered in analyzing the abusing of IP rights. 6.Part Six sets penalties for the anti-competitive behaviors. Thank you! [email protected]
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