Antitrust Implications of Technology Consortia

Economic reasoning, competition law and intellectual property law issues

Thesis (M.A.) , 2003 , 109 Pages , Grade: 1

Law - Miscellaneous

This thesis is to provide guidance for the antitrust analysis of technology consortia which is challenged by virtue of the various forms the inter-firm collaboration may take, the pooling of intellectual property rights (IPR) and the ambivalent impact this may have on competition. The starting point to a meaningful antitrust analysis of technology consortia is an understanding of the underlying economics. The following chapter is to briefly discuss the incentives of firms to cooperate, the contrasting stability issues prevailing in an anti-competitive cartel as opposed to innovation driven consortia, and the resultant welfare implications in terms of the benefits and risks of cooperation. This will allow an outline of the workable policy approach to be pursued in applying antitrust law. The third chapter focuses thereby on issues of antitrust analysis by distinguishing between two main types of technology consortia and their role in the innovation process. The assessment is to help the identification of the essential elements in antirust analysis ranging from relevant market definition to market power and intellectual property rights (IPR). In the fourth chapter, EC competition law is specifically examined against the discussed policy approach. This includes a consideration of relevant anti-competitive conduct relating to technology consortia under Article 81, the relevance of block exemptions, and finally the self-assessment under Article 81(3). In addition to a discussion of the intersection between IPR and Article 81, this will continue to be relevant for the assessment of IPR under Article 82. This chapter will end with a recommendation as to how IPR policies of technology consortia should be formulated to alleviate some antitrust concerns.
The final chapter is to conclude that both intellectual property law and competition law work towards the promotion of innovation provided that all stakeholders including firms, competition authorities and courts respect the innovation economics and legal sensitive issues. In order to promote such an awareness the identified uncertainties are addressed in tests, which are to evaluate the competitive implications of technology consortia, whereas the IPR policy is to support the prevention of an antitrust challenge. The refined analysis is then provisionally translated in the format of a guidance notice in the appendix to this thesis.

Inhaltsverzeichnis (Table of Contents)

• INTRODUCTION
• THE ECONOMIC REASONING OF TECH CONSORTIA
  • The Incentives Mechanism
  • Contrasting Stability Issues
    • Formalization of the Arrangement
    • Penalizing any Innovation Shortfall
    • Ejecting the Cheating Member
    • Sustaining the Consortium despite Default
  • Benefits and Risks
    • Risk Diminishing Factors
    • Risk Increasing Factors
  • Issues Relevant for Assessment
• POLICY IMPLICATIONS FOR COMPETITION LAW
  • General Standard Setting Cooperation
  • Specialised Cooperation - Technology Consortia
  • Competition Impact Assessment
    • Market Power
    • Cooperative Momentum
    • IPR Reliance
    • Ancillary Restraints
  • From Policy to Competition Law
• THE COMPETITION LAW PERSPECTIVE
  • Article 81: General Scope
  • The Ins and Outs under Article 81
    • Induced Collusion
    • Limitation of Technical Development

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This work examines the antitrust implications of technology consortia, focusing on their economic reasoning, policy implications for competition law, and their application within the framework of EU competition law.

• The incentives and stability of technology consortia
• The benefits and risks of such collaborations
• The role of intellectual property rights (IPR) in technology consortia
• The application of Article 81 of the Treaty on the Functioning of the European Union (TFEU) to technology consortia
• The analysis of competition law considerations, such as market power, cooperative momentum, and ancillary restraints

Zusammenfassung der Kapitel (Chapter Summaries)

This section focuses on the main themes, arguments, or narrative elements of each chapter without revealing any major conclusions or spoilers.

• Introduction: This introductory chapter sets the stage for the discussion by outlining the significance of technology consortia in the context of the European Research Area. The author underscores the need for clear guidelines in this area due to the complex nature of such collaborations and the evolving landscape of EU competition law.
• The Economic Reasoning of Tech Consortia: This chapter explores the economic rationale behind technology consortia. It analyzes the incentives driving collaboration, assesses the factors contributing to stability, and examines the benefits and risks associated with such arrangements. This analysis aims to understand the economic drivers of these collaborations and their impact on competition.
• Policy Implications for Competition Law: This chapter delves into the policy implications of technology consortia for EU competition law. It examines the different aspects of competition law relevant to these collaborations, including general standard-setting cooperation and specialized cooperation in the form of technology consortia. The chapter also discusses the assessment of competition impact, considering factors such as market power, cooperative momentum, IPR reliance, and ancillary restraints.
• The Competition Law Perspective: This chapter focuses on the application of Article 81 of the TFEU to technology consortia. It examines the general scope of Article 81 and analyzes the specific implications of induced collusion and limitations on technical development within the context of these collaborations. This section delves into the legal framework governing technology consortia within the EU.

Schlüsselwörter (Keywords)

The text focuses on key themes of technology consortia, their economic implications, and the application of competition law principles in this context. Key terms include: technology consortia, antitrust, competition law, EU competition law, intellectual property rights (IPR), market power, cooperative momentum, induced collusion, and technical development. The study explores the interplay between economic reasoning, competition law, and intellectual property law, particularly as they relate to technology consortia.

• College: University of Bonn
• Grade: 1
• Author: Andreas Seip (Author)
• Publication Year: 2003
• Pages: 109
• Catalog Number: V185887
• ISBN (eBook): 9783656982432
• ISBN (Book): 9783869430461
• Language: English
• Tags: antitrust, implications, technology, consortia, economic