Application of Antitrust Law to UDC’s Invalidation Lawsuits
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Multinational material firm, UDC, having original material patents in theOLED display market has tried to build patent portfolios using blockingpatents to extend their monopolization with their market power. Recently,three UDC patents were invalidated in Japan, and also challenged in Koreaand Europe. These strategic patentings, however, may inhibit competitors’entry into the market and suppress the competition, which adversely affectsconsumers' welfare to enjoy high quality and low price products. If thepredatory innovation like the blocking patents of UDC restricts the competitionor actually monopolizes the relevant market, such conduct shall be subjectto Section 2 of the Sherman Act as monopolization or attempted monopolizationby considering two prongs of the dominant firms’ blocking intent and thepatent’s validity. In UDC’s invalidation proceeding, hypothetically, if UDC andthe challenger reached an agreement in order to conceal UDC’s invalid patents,that settlement agreement shall be subject to Section 1 liability of the ShermanAct. To improve true innovation and to maximize consumer welfare by encouragingfirms’ competition for the ultimate goal of Antitrust Law and Patent Law,it shall be the best solution to reinforce antitrust regulatory influence on thepatent system by introduction of US Antitrust Law to IP Guidelines underMRFTA of KFTC where regulates anticompetitive conducts.
Abstract
Multinational material firm, UDC, having original material patents in theOLED display market has tried to build patent portfolios using blockingpatents to extend their monopolization with their market power. Recently,three UDC patents were invalidated in Japan, and also challenged in Koreaand Europe. These strategic patentings, however, may inhibit competitors’entry into the market and suppress the competition, which adversely affectsconsumers' welfare to enjoy high quality and low price products. If thepredatory innovation like the blocking patents of UDC restricts the competitionor actually monopolizes the relevant market, such conduct shall be subjectto Section 2 of the Sherman Act as monopolization or attempted monopolizationby considering two prongs of the dominant firms’ blocking intent and thepatent’s validity. In UDC’s invalidation proceeding, hypothetically, if UDC andthe challenger reached an agreement in order to conceal UDC’s invalid patents,that settlement agreement shall be subject to Section 1 liability of the ShermanAct. To improve true innovation and to maximize consumer welfare by encouragingfirms’ competition for the ultimate goal of Antitrust Law and Patent Law,it shall be the best solution to reinforce antitrust regulatory influence on thepatent system by introduction of US Antitrust Law to IP Guidelines underMRFTA of KFTC where regulates anticompetitive conducts.
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