Intellectual Property Rights and Competition Law in Relation to Substitutability and Pricing

IP RIGHTS AND COMPETITION LAW
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IP Rights and Competition Law
Intellectual property (IP) rights and competition law exhibit a complementary relationship. In theory, IP rights offer incentives for innovation, development, and commercialization of new products and services. IP rights offer protection to businesses by reducing the possibility of imitation. On the contrary, competition laws can be described as regulatory instruments limiting the exercise of IP rights. Both frameworks have different implications for substitutability and pricing. Substitutability describes a situation where products or services offer equally good alternatives, which increase utility for the consumers. Competition laws enhance the development of substitutes to improve the rivalry in the market. The desired outcome in such a scenario is that innovations ...