EUROPEAN COMPETITION LAW ANNUAL 2005: The Interaction between Competition Law and Intellectual Property Law (A) Ehlermann 06 Prelims 2/3/07 09:38 Page i (A) Ehlermann 06 Prelims 2/3/07 09:38 Page ii EUROPEAN COMPETITION LAW ANNUAL: 2005 The Interaction between Competition Law and Intellectual Property Law Edited by Claus-Dieter Ehlermann and Isabela Atanasiu OXFORD – PORTLAND OREGON 2007 (A) Ehlermann 06 Prelims 2/3/07 09:38 Page iii Published in North America (US and Canada) by Hart Publishing c/o International Specialized Book Services 920 NE 58th Avenue, Suite 300 Portland, OR 97213-3786 USA Tel: +1 503 287 3093 or toll-free: (1) 800 944 6190 Fax: +1 503 280 8832 E-mail: orders@isbs.com Website: www.isbs.com © The editors and contributors severally 2007 The editors and contributors have asserted their right under the Copyright, Designs and Patents Act 1988, to be identified as the authors of this work. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any mean, without the prior permission of Hart Publishing, or as expressly permitted by law or under the terms agreed with the appropriate reprographic rights organisation. Enquiries concerning reproduction which may not be covered by the above should be addressed to Hart Publishing at the address below. Hart Publishing, 16C Worcester Place, Oxford, OX1 2JW Telephone: +44 (0)1865 517530 Fax: +44 (0) 1865 510710 E-mail: mail@hartpub.co.uk Website: http://www.hartpub.co.uk British Library Cataloguing in Publication Data Data Available ISBN-13: 978-1-84113-645-5 (hardback) ISBN-10: 1-84113-645-X (hardback) Typeset by Hope Services, Abingdon Printed and bound in Great Britain by Biddles, King’s Lynn, Norfolk (A) Ehlermann 06 Prelims 2/3/07 09:38 Page iv PERMANENT SPONSORS OF THE ANNUAL EUI COMPETITION WORKSHOPS Blake, Cassels & Graydon LLP Contact: Calvin S. Goldman, QC Commerce Court West 199 Bay Street Toronto, Ontario Canada M5L 1A9 Tel: 416 863 22 80 Fax: 416 863 26 53 E-mail: cal.goldman@blakes.com Cleary Gottlieb Contact: Mario Siragusa Rome Office Piazza di Spagna 15 I-00187 Rome Tel: (06) 695 221 Fax: (06) 692 00 665 E-mail: msiragusa@cgsh.com Hengeler Müller Contact: Jochen Burrichter Benrater Strasse 18-20 40213 Düsseldorf Germany Fax: 00 49 211 83 04 222 E-mail: jochen.burrichter@hengeler.com Howrey Simon Arnold & White LLP Contact: James F. Rill, Esq. 1299 Pennsylvania Ave., NW Washington, DC 20004 Tel: (001 202) 383 65 62 E-mail: rillj@howrey.com Fax: (001 202) 383 66 10 (A) Ehlermann 06 Prelims 2/3/07 09:38 Page v Martinez Lage & Asociados Contact: Santiago Martínez Lage Claudio Coello 37 - 28001 Madrid Tel (34) 91 426 44 70 – Fax (34) 91 577 37 74 E-mail: smlage@m-lage.es Skadden Contact: Barry Hawk Brussels Office 523 Avenue Louise B-1050 Brussels Tel: (32 2) 639 03 00 Fax: (32 2) 639 03 39 E-mail: bhawk@skadden.com White & Case LLP Contact: Ian S. Forrester, QC Brussels Office 62, rue de la Loi B-1040 Brussels Tel: (32 2) 219 16 20 Fax: (32 2) 219 16 26 E-mail: forreia@brussels.whitecase.com WilmerHale Contact: John Ratliff Bastion Tower Place du Champ de Mars/Marsveldplein 5 B-1050 Brussels, Belgium Tel: (32 2) 285 49 08 Fax: (32 2) 285 49 49 E-mail: john.ratliff@wilmerhale.com vi Permanent Sponsors of the Annual EUI Competition Workshops (A) Ehlermann 06 Prelims 2/3/07 09:38 Page vi 10TH ANNUAL EU COMPETITION LAW AND POLICY WORKSHOP: THE INTERACTION BETWEEN COMPETITION LAW AND INTELLECTUAL PROPERTY LAW 3–4 June 2005, EUI Florence Participants Abbott Alden, Federal Trade Commission, Washington DC, USA. Allendesalazar Corcho Rafael, Martínez Lage & Asociados, Madrid, Spain. Amato Giuliano, Minister of Home Affairs of Italy, former President of the Italian Antitrust Authority and former Professor of Law at the European University Institute, Florence, Italy. Anderman Steven, University of Essex, School of Law, Essex, UK. Bishop Simon, RBB Economics, London, UK. Burrichter Jochen, Hengeler Müller, Düsseldorf, Germany. Drexl Josef, Institute for International Law at the University of Munich, and Director at the Max Planck Institute for Intellectual Property, Competition and Tax Law, Munich, Germany. Dreyfuss Rochelle, New York University, School of Law, New York, USA. Durand Benoît, Chief Economist Team, DG Competition, European Commission—Brussels, Belgium. Ehlermann Claus-Dieter, WilmerHale, Brussels, former Professor of Law at the EUI, and forner Director General of the Legal Service and Competition Directorate at the European Commission, Brussels. Fels Allan, Dean of the The Australia and New Zealand School of Government (ANZSOG), Melbourne, Australia. Fingleton John, Chief Executive, Office of Fair Trading, London, UK, and former Chairman of the Irish Competition Authority, Dublin, Ireland. Forrester Ian, White and Case, Brussels, Belgium. Fox Eleanor, New York University, School of Law—New York, USA. Ghidini Gustavo, LUISS University, and Director of the Osservatorio di pro- prietà intelletuale, concorrenza e communicazioni—Rome, Italy. Goldman Calvin, Blake, Cassels & Graydon LLP—Toronto, Canada. Jenny Frédéric, Department of Economics, and Director of International (A) Ehlermann 06 Prelims 2/3/07 09:38 Page vii Relations, ESSEC Business School, Paris, France, former Vice-President of the French Competition Council. Kjøelbye Lars, Deputy Head of Unit Enforcement Priorities and Decision Scrutiny, DG Competition, European Commission—Brussels, Belgium. Komninos Assimakis, White & Case, Brussels, Belgium. Lowe Philip, Director General, DG Competition, Brussels, Belgium. Melamed Douglas, WilmerHale, Washington DC, USA. Mestmäcker Ernst-Joachin, Max Planck Institut für ausländisches und inter- nationales Privatrecht, Hamburg, Germany. Newman Penny, Chief of Antitrust, Bertelsmann AG, Brussels, Belgium. Pate Hewitt, Hunton & Wiliams, Washington DC, former Assistant Attorney General, US Department of Justice, Washington DC, USA. Peeperkorn Luc, DG Competition, Policy Development Unit, Technology Transfer Review, Brussels, Belgium. Platt Majoras Deborah, Chairman of the Federal Trade Commission, Washington DC, USA. Plompen Peter, Plompen Law, Eindhoven, The Netherlands. Rey Patrick, Institut d’économie industrielle, Université des Sciences Sociales, Toulouse, France. Rill James, Howrey LLP, Washington DC, USA. Schweitzer Heike, Max Planck Institut für ausländisches und internationales Privatrecht, Hamburg, Germany. Siragusa Mario, Cleary Gottlieb, Rome, Italy. Ullrich Hanns, Law Department, European University Institute, Florence, Italy. Venit James, Skadden, Brussels, Belgium. Vinje Thomas, Clifford Chance, Brussels, Belgium. viii List of Participants at the 2005 Workshop (A) Ehlermann 06 Prelims 2/3/07 09:38 Page viii CONTENTS List of Sponsors v Participants vii Table of Cases xiii INTRODUCTION xxvii SESSION ONE: GENERAL ASPECTS 1 1PANEL I: TO WHAT EXTENT DOES IP REQUIRE/JUSTIFY ASPECIAL TREATMENT UNDER COMPETITION RULES?3 Discussion 3 PANEL II: A CRITICAL EXAMINATION OF THE TT BLOCK EXEMPTION REGULATION AND TT GUIDELINES 34 Discussion 34 2 Working Papers 47 I R. Hewitt Pate: Competition and Intellectual Property in the US: Licensing Freedom and the Limits of Antitrust 49 II Ian S. Forrester QC: Regulating Intellectual Property Via Competition? Or Regulating Competition Via Intellectual Property? Competition and Intellectual Property: Ten Years On, The Debate Still Flourishes 59 III Philip Lowe and Luc Peeperkorn: Intellectual Property: How Special is its Competition Case? 91 IV Gustavo Ghidini and Emanuela Arezzo: On the Intersection of IPRs and Competition Law With Regard to Information Technology Markets 105 V Rochelle Dreyfuss: Unique Works/Unique Challenges at the Intellectual Property/Competition Law Interface 119 VI Simon Bishop and Dan Gore: From Black and White to Enlightenment? An Economic View of the Reform of EC Competition Rules on Technology Transfer 141 VII Lars Kjøelbye and Luc Peeperkorn: The New Technology Transfer Block Exemption Regulation and Guidelines 161 VIII Steven Anderman: Technology Transfer and the IP/Competition Interface 211 (A) Ehlermann 06 Prelims 2/3/07 09:38 Page ix SESSION TWO: SELECTED PROBLEM AREAS 237 1PANEL III: PATENT POOLS 239 Discussion 239 PANEL IV: COLLECTING SOCIETIES 254 Discussion 254 2 Working Papers 271 I A. Douglas Melamed and David Lerch: Uncertain Patents, Antitrust, and Patent Pools 273 II Peter Plompen: The New Technology Transfer Guidelines (TTG) as Applied to Patent Pools and Patent Pool Licensing: Some Observations Regarding the Concept of ‘Essential Technologies’ 295 III Hanns Ullrich: Patent Pools: Approaching a Patent Law Problem Via Competition Policy 305 IV Allan Fels, AO and Jill Walker: Australian Intellectual Property Law, Competition and Collecting Societies: Efficiency, Monopoly, Competition and Regulation 329 V Ernst-Joachim Mestmäcker: Collecting Societies 343 VI Frédéric Jenny: EC Competition Law Enforcement and Collecting Societies for Music Rights: What Are We Aiming For? 361 VII Rafael Allendesalazar and Roberto Vallina: Collecting Societies: The Usual Suspects 371 VIII Thomas Vinje and Ossi Niiranen: The Application of Competition Law to Collecting Societies in a Borderless Digital Environment 399 SESSION THREE: SELECTED PROBLEM AREAS (CONTINUED) 419 1PANEL V: INTELLECTUAL PROPERTY AND MERGER CONTROL 421 Discussion 421 PANEL VI: ABUSE OF DOMINANCE IN LICENSING AND REFUSAL TO LICENSE 439 Discussion 439 2 Working Papers 461 I Deborah Platt Majoras: The Role of Intellectual Property in Merger Review: Recent Cases from the US Antitrust Enforcement Agencies 463 II Benoît Durand: Intellectual Property and Merger Control: Review of the Recent Experience under the European Merger Regulation 475 x Contents (A) Ehlermann 06 Prelims 2/3/07 09:38 Page x [...]... xxviii Interaction between Competition Law and Intellectual Property Law Why the Subject? When Claus-Dieter Ehlermann asked me in late December 2004 whether I would be willing to contribute to the 10th Annual Competition Law and Policy Workshop, I was not quite sure whether he was about to offer me a Christmas gift or another Dardanians present.1 After all, the relationship between the protection of intellectual. .. S (1998): EC Competition Law and Intellectual Property Rights, Oxford University Press, Oxford, pp 11 et seq As to the Court (Aa) ELR Introduction xxx 1/3/07 16:44 Page xxx Interaction between Competition Law and Intellectual Property Law In addition, competition law itself has changed This is most obvious as regards European law Contrary to rst impressions, and beyond the regulation of the practicalities... the rules for determining the optimal interaction1 6 between the two bodies of law The Areas of Interaction 1 The transactional context of intellectual property- related restrictions of competition both the expansion of intellectual property protection and the continuous unfolding of competition law necessarily meant an extension of the areas of contact and possible conict or interaction In a rst approach... xxxi Interaction between Competition Law and Intellectual Property Law xxxi arrangements or practices in competition, and in particular its focus on effects rather than on form, may result in a shift of emphasis in the analysis of intellectual property- related restrictions of competition, namely: from delimiting the legitimate scope and exploitation of the exclusive IP right by reference to free competition, ... to their distinct main purpose As simple as this distinction is, it points to the areas where competition rules may be intellectual property- specic and those where they are not, the pro- or anticompetitive nature of the transaction also determining the assessment of the concomitant intellectual property- related elements of the transaction 1.1 Intellectual property- specic transactions Intellectual property- specic... the title of the workshop was chosen by C.-D Ehlermann, and probably not with the connotation given to it in the text (Aa) ELR Introduction 1/3/07 16:44 Page xxxii xxxii Interaction between Competition Law and Intellectual Property Law by Commission Regulation 772/2004 on the application of Article 81 EC to certain categories of technology transfer agreements17 and the accompanying Guidelines on the. .. Why the Subject? The Areas of Interaction 1 The transactional context of intellectual property- related restrictions of competition 1.1 Intellectual property- specic transactions 1.2 Intellectual property- supported transactions a Franchise agreements b Joint research and development 1.3 Intellectual property- resistant transactions 2 Technology transfer: how far does the rationale carry? 2.1 Power or property? ... of the European Parliament and the Council on the harmonisation of certain aspects of copyright and related rights in the Information Society, OJ L 167 [2001] 9 For this distinction between the existence and the exercise of intelelctual property rights, as introduced by the ECJ in its judgment of July 13, 1966, in Joined Cases 56 and 58/64, Grundig and Consten v Commission [1966] 321, 394, see Anderman... on the one handto determining the conditions for its most efcient use as part of a cooperative or monopolistic innovation/investment strategy in markets with a sufcient degree (or at least a likelihood) of effective competition, on the other Instead of dening the intersection between intellectual property law and competition law, as was once done,15 IPR-related antitrust law would thus provide the. .. 16:44 Page xxxv Interaction between Competition Law and Intellectual Property Law xxxv a Franchise agreements The format closest to intellectual property- specic transactions is the franchise agreement Franchises essentially represent service-based distribution systems using trademark and design protection as a support and control instrument in exchange for the provision of retail know-how to the franchisees.36 . EUROPEAN COMPETITION LAW ANNUAL 2005: The Interaction between Competition Law and Intellectual Property Law (A) Ehlermann 06 Prelims. Page ii EUROPEAN COMPETITION LAW ANNUAL: 2005 The Interaction between Competition Law and Intellectual Property Law Edited by Claus-Dieter Ehlermann and Isabela