Predatory and Exclusionary Innovation: Which Legal Standard for Software Integration in the Context of Competition v. Intellectual Property Rights Clash?

26 Pages Posted: 20 Sep 2005 Last revised: 14 May 2014

See all articles by Maria Lillà Montagnani

Maria Lillà Montagnani

Bocconi University - Department of Law; Ask Research Center; New York University School of Law

Abstract

This paper aims to address two questions: first, how to identify the legal standard that courts use to assess a specific behavior (software integration) commonly adopted by firms possessing IPRs. Second, whether this standard enables us, on the one hand, to draw a line between predatory and competitive innovation, and, on the other, to strike a balance between: the market leaders' freedom to innovate and the public interest towards the persistence of competitive markets.

The research consists of an examination of the main hardware and software integration cases in the US and the EU, from which a standard echoing the predatory innovation doctrine principles and increasingly aware of network effects and high-tech market features emerges. The conclusion is thus that, as long as IPRs work as incentives to innovate, a system of rivalry is to be maintained. However, when exploitation of IPRs by rightholders becomes a means to limit competition in the market (in that it enables to prevent both competitors and rightholders' further innovation); then IPRs lose the function of innovation incentives and remedies are to be undertaken in order to maintain competition effective in the market.

Keywords: competition law, intellectual property law, software integration, innovation, Microsoft

JEL Classification: K19, K21, K39

Suggested Citation

Montagnani, Maria Lillà, Predatory and Exclusionary Innovation: Which Legal Standard for Software Integration in the Context of Competition v. Intellectual Property Rights Clash?. IIC, Vol. 37, p. 304, 2006, Bocconi Legal Studies Research Paper No. 2006-12, Available at SSRN: https://ssrn.com/abstract=804985

Maria Lillà Montagnani (Contact Author)

Bocconi University - Department of Law ( email )

Via Roentgen, 1
Milan, Milan 20136
Italy

Ask Research Center ( email )

via Roentgen 1
Milan, 20136
Italy

New York University School of Law ( email )

40 Washington Square South
New York, NY 10012-1099
United States

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