Competitive Analysis of Excessive Pricing in intellectual property Rights Scope by Dominant Firms

Document Type : Research Paper

Authors

1 Islamic Azad University- Eslamshahr branch

2 university of Tehran

Abstract

One of the exploitative behaviors of prominent corporations is excessive pricing, which causes direct harm to consumers. On the contrary, IP rights let holders to set price of products and technologies in a way to compensate investment in Research and Development (R&D) and earn profit. This research tackles the approaches of Iran, USA and EU legal systems in a case of encountering IP rights and Competition Law in the field of excessive pricing.
In US legal systems, they believe that invisible hands can control prices and competition law is not an appropriate instrument for pricing so the holders of intellectual property right is free to increase prices On the contrary, there is not any difference between IP rights and other property in EU and excessive pricing by dominant firms is competition laws. This approach has been accepted in Iran’s legal system. However, success with this approach in Iran requires comprehensive support by innovators and IP rights holders.  freedom of IP pricing is one of these support mechanisms that increases incentive for innovation.

Keywords

References

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