If your business operations involve licensing or the transfer of
intellectual property ('IP') rights, such as trademarks,
patents, registered designs or copyright, you need to be aware of
the recent legal changes outlined below in order to:
- avoid significant monetary penalties; and
- review your commercial agreements to ensure compliance with
competition laws.
Prior to 13 September 2019, companies and/or individuals
entering into commercial transactions to licence the use of or
transfer ownership of IP rights were exempt from some provisions of
the Competition and Consumer Act 2010, which
otherwise prohibits conduct that reduces competition.
From a practical perspective, this exemption meant that conduct
which has the effect of substantially decreasing competition within
a market was acceptable in relation to IP licensing and assignment
agreements. The exemption was based on a presumption that a
conflict exists between the use of IP rights, which by their
