"Laws relating to intellectual property and competition both are necessary for the efficient operation of the market place." In the light of this statement, explain the interface between intellectual property rights and

It is generally believed that Intellectual Property protection and the Competition Law are odds with each other. This belief is based on the premise that while Intellectual Property law creates and protects monopoly power, the competition law seeks to exclude it. However, protection of IPR is not per se against the policy of sustaining competition at the market place. The objective of competition law is to prohibit anti-competitive practices and in that sense the objective of both the streams of law i.e. IPR and Competition law is to give a boost to the economy by maximising the wealth. While a sustained competition in the market place is necessary for the economy, the protection conferred by the IPR is necessary to foster innovation and choice of products in the market which infuses efficiency in the market and increases consumer welfare. In that sense both the regimes are necessary for the efficient operation of the marketplace. Intellectual property laws provide property rights comparable to those of other kinds of private property, thereby providing incentives for owners to invest in creating and developing intellectual property and encouraging the efficient use and dissemination of the property within the marketplace. Similarly, competition law is intended to enhance consumer welfare by promoting competitive markets and consumer choice. Competition law and Intellectual Property law are closely linked, as intellectual property law rewards innovation by granting exclusive rights to its holder, the competition law ensures that there is an opportunity available to the new players to enter the market and render better products and services at a competitive price and thereby ensuring consumer welfare. In most instances, competition and intellectual property laws can be seen as complementary, seeking to promote innovation to the benefit of consumers and the economy. However, in situations where intellectual property owners are in a position to exert substantial market power or to engage in anti-competitive conduct, the conflict between the two becomes apparent. In all such cases, the owners of intellectual property rights seek to extend the scope of their right beyond what is intended by the intellectual property Law. The key issue in all such cases therefore, is to find out an appropriate balance between the need to confer intellectual property rights and the need to promote competition in the market. The major challenge for the authorities established under the competition law in such situations is how to minimize the anti-competitive effects of Intellectual Property Rights while respecting their existence and the societal goals they are meant to promote consumer welfare.