Joint Research and Development under US Antitrust and EU Competition Law

Joint Research and Development under US Antitrust and EU Competition Law

New Horizons in Competition Law and Economics series

Björn Lundqvist

This fascinating new book dissects, from a Competition law perspective, how Research and Development collaborations operate under both US and EU antitrust law. Analyzing the evolution of this innovation landscape from the 1970s to the present day, Blomqvist details the modifications and amendments made over this time to the relevant legal acts and guidelines. In doing to, the author picks up on the slow shift that has taken place in both the antitrust laws of the USA and the Competition Rules of the EU. The book concludes by discussing the necessity for a stringent attitude towards the antitrust establishment, and how this can be developed by reviving the concept of the ‘innovation market’.

Chapter 4: Innovation policy to be implemented

Björn Lundqvist

Subjects: economics and finance, competition policy, law - academic, competition and antitrust law

Extract

The object of this book is thus to dissect the antitrust treatment in the US and under EU law of joint research and development (joint R & D) with thereto connected agreements for the implementation of the result of such R & D collaboration. Special focus has been on the new economy, mainly the network industries and the pharma and biotech industries. An initial proposal would be that the US and Europe, not having a unified experimental use exemption, need to align (harmonise) their experimental use defences under intellectual property law. Under competition law, the consequence of different experimental use defences, between the EU and the US, is difficult to establish. As discussed above, in theory, it creates unexpected effects. Firms are forced to collaborate since the experiment use exemption never or seldom applies. Moreover, it is clear, from the above, and also from Peritz’s research, that a limited or very restricted unlicensed experimental use defence increases transaction costs. Firms must at least enter into licence negotiations and agreements, which, if the transaction cost increases, will imply that scarce resources are not allocated in the most efficient way. One of the ideas or theses of the book is to propose a way to identify dominance or market power for the participants of an R & D collaboration in the innovation segment without the establishment of an innovation ‘market’.

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