Explain the restrictive trade practice of tie-in arrangements in IPR licensing.

Tie-in-Arrangement in an intellectual property licencing arrangement requires the licensee to obtain raw materials, spare parts, and intermediate products for use with licensed technology only from the licensor or its nominees. Such arrangements also oblige the licensee to use the personnel designated by the licensor. The purpose is to preserve exclusive right to supply necessary processed or semi-processed inputs, to maintain quality control and to expand the licensor's profit margin. The tie-in clauses in an agreement generally result in a monopoly control of the supply of equipment and other inputs for the supplying enterprises, leading to 'transfer pricing', 'transfer accounting' or uneconomic output'. Due to tie-in clauses, licensor charges higher price for inputs and equipment. The use of tie-in clauses not only affects production costs through the overpricing of inputs but may have important indirect effect on the import substitution, export diversification and growth efforts of the licensee. Tie-in-arrangements fall foul of the provisions relating to anti-competitive practices under the Competition Act, 2002.