IMS Health: ECJ Rules on Compulsory Licensing

On 29 April 2004, the European Court of Justice ("ECJ") ruled that the refusal by an undertaking in a dominant position to grant a licence for copyright will only constitute an abuse of a dominant position if it prevents the emergence of a new product or service for which there is a potential demand, is without objective justification and is capable of eliminating all competition on the relevant market.

The ruling clarifies the "exceptional circumstances" which justify compulsory licensing of intellectual property rights under EC competition law.

IMS Health is the world's largest supplier of information on sales and the prescription of pharmaceutical products and had developed a successful system, the "1860 brick structure", for compiling this information which was protected by copyright.