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

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.