The National Development and Reform Commission released the Guideline against Monopolies Resulting from Misuse of Intellectual Property Rights on December 31, 2015 for public review. The soliciting for comments ends on January 20, 2016.

The guideline stipulates protocols between market operators with or without competitive relations, and covers eight possible conditions including cross-licensing, joint research and development and price limits. The guideline also defines the determination regarding misused market dominance. It will better the clarify situations such as for last year’s Qualcomm case, where the US smartphone chipmaker was fined 6 billion yuan for violating China's anti-monopoly law.

Another highlight in the guideline is considered to be the introduction of market share criteria. Accordingly, protocols that do not greatly exclude competition can be forgiven. It will provide companies with clearer rational expectations and reduce their compliance costs. 0106_1225627.htm