WASHINGTON, DC – In written comments submitted in response to questions from the Federal Trade Commission (FTC), the Innovation Alliance has cited three basic principles that should guide effective competition policy and antitrust law as they relate to intellectual property-related conduct. The three principles articulated by Innovation Alliance are:

1. Competition and antitrust law and policy must be defined to accommodate the common purpose of both the antitrust laws and intellectual property laws, i.e., to promote consumer welfare. This requires a strong IPR environment that fosters innovation and competitiveness. Competition and antitrust law should play a role only to address conduct that has a demonstrable anticompetitive effect.

2. Competition policy and antitrust law must recognize the varying legitimate interests that exist among different entities with different business models. For example, small manufacturing entities, technology developers, software companies, universities, vertically integrated manufacturers and aggregators of IP developed by third-parties, and others.

3. Consideration, and even deference, should be given to the evolution of legal principles in the patent context before antitrust and competition enforcement agencies consider addressing conduct that may be better addressed under non-competition law legal principles. Recent developments in patent law as exemplified by the eBay, KSR and other decisions confirm the appropriateness of such deference.

In addition to written comments, two Innovation Alliance member companies, represented by Taraneh Maghame, Vice President, M&A and Government Relations, Tessera, Inc.; and Bryan Lord, Vice President of Financing & Licensing and General Counsel, AmberWave Systems Corp., participated as panelists at today’s FTC public hearing on “The Evolving IP Marketplace.” Visit www.innovationalliance.org for a copy of Innovation Alliance’s written comments.

Click here for a copy of Innovation Alliance’s written comments.