IPR Regime and Antitrust Implications of Mergers and Acquisitions: With a Focus on Software and Pharmaceutical Sector

Published date01 June 2021
DOI10.1177/0003603X21997021
Date01 June 2021
Article
IPR Regime and Antitrust
Implications of Mergers
and Acquisitions:
With a Focus on Software
and Pharmaceutical Sector
P. L. Beena*
Abstract
This article seeks to analyze the trends and patterns of mergers and acquisitions (M&As) during the
Trade-Related Intellectual Property Rights regime and addresses the antitrust issues related to
innovation and competition in the framework of competition policy. Empirical evidence supports the
view that enhancing size in terms of corporate control of equity, product market share, and innovation
market share could be the motivations for the M&A phenomenon in the sector such as software and
pharmaceuticals. These sectors were able to extract relatively more profit margin as compared to the
manufacturing sector. This article further observes anticompetitive practices in terms of pricing and
abuse of dominance in these two industries. The study argues for introducing regulatory mechanisms
in the competition policy which could address the antitrust implications of M&As that are engaged in by
knowledge-based firms and start-ups. This is because such acquisitions can reduce the incentives to
innovate or change the innovative and competitive dynamics in the relevant market.
Keywords
IPR and innovation, WTO, start-ups, antitrust issues, M&As
Implementation of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) as part of the
World Trade Organization (WTO) expects to boost the technological capabilities of the industry,
attract more foreign direct investments (FDI), and create a competitive environment. However, it is
quite evident that leading firms especially in the technology-oriented sectors at the global level have
strengthened their competitive positions by acquiring their potential competitors. Leading firms owned
* Centre for Development Studies, Thiruvananthapuram, Kerala, India
Corresponding Author:
P. L. Beena, Centre for Development Studies, Prasanth Nagar, Ulloor, Thiruvananthapuram, Kerala 695011, India.
Email: beena@cds.edu
The Antitrust Bulletin
2021, Vol. 66(2) 203–213
ªThe Author(s) 2021
Article reuse guidelines:
sagepub.com/journals-permissions
DOI: 10.1177/0003603X21997021
journals.sagepub.com/home/abx

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT