Guidelines on the Application of Competition Law to Intellectual Property Rights

The Commerce Commission has published Guidelines on the Application of Competition Law to Intellectual Property Rights (Guidelines) to help businesses understand how competition law applies to the exercise of intellectual property rights.

The Commerce Act 1986 (Act) exempted certain conduct in relation to intellectual property from being assessed as anti-competitive and in breach of the Act. From 5 April 2023, these limited exemptions are removed and all conduct relating to intellectual property is capable of breaching the Act, in some circumstances.

The Commission’s Competition General Manager, Antonia Horrocks, says the Commission recognises the importance of both intellectual property rights and competition to promote innovation, economic growth and consumer welfare.

“We know that competition is good for business and good for consumers. It encourages businesses to offer lower prices, better services and higher quality goods, and drives innovation and efficiency.”

“Business arrangements relating to intellectual property rights can be pro-competitive and contribute to development of new products. However, such arrangements may also lessen competition, enhance market power or facilitate cartel conduct.”

These Guidelines should assist businesses in understanding when conduct related to intellectual property may also create competition issues. The Guidelines can be found on the Commerce Commission's website here.