Laws And Regulations Governing Non-competition Provisions Defined In Patent License Agreement

Competition and patent are believed to constitute the two major legal systems in the global economic trend. As far as many developing countries are concerned, the two legal systems play very important roles. The transfer of technology may be carried out efficiently and effectively under the license agreement for intellectual property rights, so that the ultimate end for autonomy of technology and upgrading of industries may be achieved. However, the non-competition provisions generally provided in the license agreement not only cause the failure to achieve the ultimate end but also produce certain adverse effects that interfere with the local competition order and industrial development. Similarly, the competition law is applied as an important means in the modern countries' industries. By virtue of adjustment on competition policies, the policies over industrial technologies and transfer of technologies can be adjustedrelatively. Therefore, ingenious application of the competition law produces material effects to the upgrading and improvement of industrial technologies. This study is intended to launch a probe into the scope subject to the U.S. competition law and make relative comparison in terms of Japanese Anti-monopoly Act. Meanwhile, the relevant regulations and polices applicable in the territory of Taiwan are also provided herein for reference. In conclusion, this study wishes to provide optimal suggestions applicable to the legal and economic systems towards the legislation and amendments of the relevant legal systems presently available in this country.Chapter I focuses the point on the discussion about relationship of the patent system and competition policies. The study is oriented towards the validity of the patent system to discuss the reasons and expert opinions concerning support and opposition of the patent system, as well as the social cost and economic function of the patent system. Meanwhile, the .study also identifies the ultimate goal in common of the patent system and free competition policies, in terms of the possibilities caused by the freedom of contract that might restrict the competition, and re-confirms the positive value of the patent system that should not be denied or ignored in whole merely on the ground of the non-competition provisions defined in the license agreement. Finally, the study explores the possibility and necessity for the compatibility of the both in hopes of seeking reconciliation between the both.Chapter II of this study illustrates the value and function of the competition law in terms of its academic theory and history and launch a rough probe into the relationship between the objects protect able underthe competition law and the exclusive rights granted to patentees subject to the intellectual property rights. Furthermore, the Chapter discusses the model and management theory provided in the competition law and thereby dialyzes the nature of the competition law and signify the economic function of the competition system in market. Then, in terms of the relations between the rapid development of technology industries and the competition law, the Chapter also identifies the important value and position of the patent system and competition law in the high-tech industry and reflects the law-enforcing predicament faced by the competition law. Chapters III and IV are related to the research conducted based on the comparative law. The history and background of the U.S. Anti-Trust Law are first introduced in Chapter IV. Then, through the development of the relevant precedents, the Chapter illustrates the adjustment made on the competition policies subject to the variable economic environment and also analyzes the principle based on which the non-competition provisions in the license agreement should be subject to the anti-trust laws and also the methods to evaluate such provisions. In Chapter V, the relevant anti-trust laws applicable in Japan are introduced preliminarily, including their background, history, and the scope applicable to Article 23 of Japanese Anti...