Chapter 10: Competition and Innovation
In order to promote growth and innovation companies may acquire exclusive rights to new knowledge through patents, trademarks and copyright. At a first glance, such exclusive rights appear to be in conflict with the principles of competition law.
Analyses in chapter 10 indicate, however, that this is not the case. The patent system does not reduce competition. On the contrary, patents may encourage the dissemination of inventions which could otherwise be kept secret.
However, there are situations in which patents are misused. The chapter therefore suggests improving the rules for attaining compulsory licenses. It also suggests that patents, which are part of standard, should be available to everyone on equal terms.
The chapter furthermore stresses that the circumstances under which companies may trade knowledge and exclusive rights should be improved. This will benefit Danish companies – both when selling and buying knowledge. And large companies trading or exchanging license rights should be required to give access to other companies on equal terms.
Finally, it may be necessary to look critically at the EU Commission’s “technology transfer block exemption”. The block exemption is so complex that only few use it – which in itself is a problem. It may be a good idea to repeal the block exemption and replace it by guidelines which stress that trade and licensing of knowledge is beneficial – so long as this trade is not used to restrain competition.
(Andreas Ring)