Anti Competitive Agreements Under Competition Act 2002
However, the Competition Act 2002 («Act») recognizes intellectual property rights and, to facilitate their protection, the Law permits appropriate restrictions imposed by their owners. Similarly, the law frees up agreements between exporters, as exports do not affect markets in India. The Competition Commission of India («CCI») has been empowered to order any company or person to modify, discontinue and not renew anti-competitive agreements and to impose penalties of up to 10% of the average turnover of the last three years. In this context, CCI finds that any «reasonable condition» imposed for the protection of legal protection laws would not attract Section 3, but that the imposition of an «inappropriate condition» on ipR`s protection would be contrary to Section 3 of the Act. The ICC provides an illustrative list of practices/agreements that, although entered into to protect IpR, may violate Section 3 of the Act5. 1 The common sense rule in examining the legality of trade restrictions was explained by the U.S. Supreme Court in Board of Trade of Chicago vs. US (1918) 246 U.S. 231 as follows: «Any restriction is essential until it only regulates and promotes competition. .