Expansion of Anti-Monopoly Law enforcement needs monitoring

It is generally held that such intellectual property (IP) as patents, trade secrets, etc., is a type of statutory monopoly granted rights holders by the law, the objective being to promote technical progress. However, if a rights holder abuses its IP to the extent that it hinders fair competition, it will cross the red line of the Anti-Monopoly Law (AML).

Recently, both Qualcomm and IDC were investigated in China in connection with IP-related monopolistic behaviour. From this it can be seen that IP rights holders and practitioners in relevant industries must also pay close attention to the central government’s anti-monopoly direction.

Pursuant to the AML implemented on 1 August 2008, the Ministry of Commerce (MOFCOM), National Development and Reform Commission (NDRC) and State Administration for Industry and Commerce (SAIC) are specifically tasked with AML-related law enforcement work, and may delegate the authority for relevant enforcement work to the corresponding provincial-level government authority.