CCI lacks power to examine disputes over patented products, says NCLAT

Core Viewpoint - The National Company Law Appellate Tribunal (NCLAT) ruled that the Competition Commission of India (CCI) lacks the authority to examine patent-related disputes, affirming that the Patent Act takes precedence over the Competition Act in this context [1][12]. Summary by Sections NCLAT Ruling - NCLAT dismissed an appeal against a CCI order that closed a complaint against Vifor International (AG), stating that the CCI does not have the power to investigate allegations related to patents [1][12]. - The ruling emphasized that the Patent Act will prevail over the Competition Act in cases involving patented products, specifically referring to Ferric Carboxymaltose (FCM) injection [1][12]. Background of the Case - The appeal was filed by Swapan Dey, CEO of a hospital providing free dialysis services, who claimed that Vifor International's conduct made FCM injections inaccessible and unaffordable for patients suffering from Iron Deficiency Anaemia (IDA) [5][6]. - Dey alleged that the CCI failed to address the relevant market and the dominant position of Vifor International in its investigation [7][8]. CCI's Previous Findings - The CCI had previously closed the investigation on October 25, 2022, finding no contravention by Vifor under Sections 4 or 3(4) of the Competition Act [7][12]. - Dey argued that the CCI made an error by conducting an ex-ante analysis instead of an ex-post analysis regarding the alleged violation [8][12]. Vifor International's Defense - Vifor International contended that the CCI lacked jurisdiction over the matter since the FCM molecule is governed by the Patent Act [9][12]. - The company informed NCLAT that the patent for FCM, granted on June 25, 2008, expired on October 21, 2023, and is now in the public domain [10][11]. Legal Precedents - NCLAT referenced previous judgments, including one from the Delhi High Court, which established that the Patent Act supersedes the Competition Act [12].