FTC works out regulations for IPR abuse

Abuses of intellectual property rights (IPR) such as Microsoft`s forced sale of Internet Explorer with its Windows programs will also be punished in Korea.

The Fair Trade Commission (FTC) said on Wednesday that it would implement guidelines for the review of the improper exercise of IPR, so that blocking market competition by abusing IPR could be punished.

According to the guidelines, if the owners of IPR that are essential to advancing into the market do not allow others to use the IPR without any due reason, thus blocking their business operations, their behavior is considered as restricting competition.

The IPR owners can allow the use of their IPR by classifying regions, but they should not make any contract by dividing the sales districts in a bid to avoid competition among owners of similar IPR.

Other practices to be regarded as unfair behavior subject to punishment are: restricting the places of parts purchase or forced sales of parts; forcing the transfer of improved IPR technology or preventing the improvement technology; preventing the use of rival companies` products; restricting trade volume, methods or sales prices; unilateral cancellation of contracts or establishing unilateral preconditions.