Open AccessThe monopoly leverage theory and tying/ bundling arrangement in intellectual property rights transfer contracts
Author(s) -
Bui Thi Hang Nga
Publication year - 2019
Publication title -
khoa học và công nghệ: kinh tế - luật - quản lý
Language(s) - English
Resource type - Journals
ISSN - 2588-1051
DOI - 10.32508/stdjelm.v3i3.566
Subject(s) - tying , monopoly , leverage (statistics) , intellectual property , industrial organization , market power , business , economics , monopolistic competition , intangible property , microeconomics , property rights , law and economics , law , machine learning , computer science , political science
The exclusive essence and importance of intellectual property rights in production and business provide the owners with a competition advantage, even monopoly power, in the related market. To maximize profit and retain the monopoly position, owners tend to use intellectual property rights as a monopoly leverage to require the transferee to accept the tying arrangement as a condition for the transfer. Monopoly leveraging is defined as the use of monopoly power in one market as leverage to obtain a competitive advantage in a second market. From the perspective of competition law, the theory of leverage is used to explain the cases of businesses abusing market power (monopoly) obtained from intellectual property rights to limit competition. This paper addresses the utilization of monopoly leverage theory to explain the owepractices of tying arrangement in intellectual property rights transfer contracts.