Justices Najmi Waziri and Vikas Mahajan of the Delhi High Court have held that the Patents Act of 1970 takes precedence over the Competition Act of 2002 regarding the exercise of rights by a patentee. The judges, while delivering their verdict, stated that the Competition Commission of India (CCI) does not possess the authority to investigate the business of patent licensing or determine whether a company has abused its dominant position in relation to patent rights.

The ruling was made in response to a set of appeals and a writ petition filed by major players in the industry, including agrochemical giant Monsanto, telecom company Ericsson, and the CCI. Both Monsanto and Ericsson had challenged the CCI's antitrust investigations into allegations of anti-competitive practices and failure to reasonably make their patents available. They questioned the CCI's jurisdiction to conduct such inquiries.

The Division Bench, consisting of Justices Najmi Waziri and Vikas Mahajan, disagreed with the arguments put forth by the CCI. They emphasized that Chapter XVI of the Patents Act provides a comprehensive framework for addressing issues related to unreasonable conditions in patent licensing agreements, abuse of patentee status, inquiries, and appropriate relief.

The judges underscored that the Patents Act is a specialized legislation specifically dealing with patent-related matters, while the Competition Act is a broader law addressing anti-competitive agreements and abuse of dominant position in general. The inclusion of Section 84(6)(iv) in the Patents Act, after the enactment of the Competition Act, further indicates the legislative intent to maintain the Patents Act's exclusive domain regarding reasonable conditions.

Consequently, the Court set aside the judgments passed against Ericsson and Monsanto and quashed the CCI proceedings initiated against them.

The notable decision was delivered by a panel of esteemed judges, including Justices Najmi Waziri and Vikas Mahajan, showcasing their profound understanding of the legal intricacies involved in patentee rights and competition law.

Senior Advocates CS Vaidyanathan, Neeraj Kishan Kaul, and Sajan Poovayya, along with a team of diligent advocates, represented Ericsson. Monsanto was skillfully represented by Senior Advocates Dr. Abhishek Manu Singhvi, CM Lall, and Raj Shekhar Rao, supported by a proficient team of advocates.

Additional Solicitors General N Venkatraman and Balbir Singh, along with a group of capable advocates, appeared for the CCI. Other parties involved in the case were also represented by their respective advocates.

Case Title: TELEFONAKTIEBOLAGET LM ERICSSON (PUBL) vs. COMPETITION COMMISSION OF INDIA & ANR.