Appellate tribunal NCLAT has said the fair-trade regulator Competition Commission of India has no power to examine into the disputes related to patent matters.
Dismissing an appeal against a CCI order, in which the regulator had closed a complaint against Swiss pharma major Vifor International (AG), a two-member NCLAT bench said the 'Patent Act will prevail over the Competition Act'. Citing the earlier judgments, NCLAT said: "Considering the judgment of the Delhi High Court in the case of Telefonaktiebolaget LM Ericsson (PUBL) and the Supreme Court in the SLP No. 25026/2023, it is apparent that the CCI lacks the power to examine the allegations made against Vifor International (AG)."
NCLAT, which is an appellate authority over the orders passed by CCI, said Vifor International had the patent for Ferric Carboxymaltose (FCM) injection, which is required for the treatment of Iron Deficiency Anaemia (IDA). "The Patent Act will prevail over the Competition Act in the facts of this case, as the subject matter of contention is FCM, which was developed and patented by Respondent No. 2 (Vifor International). There is no dispute that Respondent No. 2 held the said patent at the relevant time," said the National Company Law Appellate Tribunal (NCLAT). NCLAT, in a 14-page-long order, noted that Section 3(5) of the Competition Act provides protection to a person holding a patent to restrain any infringement of or to impose reasonable conditions, as may be necessary for protecting their rights. "The Competition Act, in Section 3(5), has laid down that the Competition Act will not restrict the right of any person in protecting his rights under the Patent Act," said NCLAT. NCLAT order came over an appeal filed by one Swapan Dey, who is the CEO of a hospital providing free dialysis services to patients on behalf of the Government through a Private Pubic Partnership under Pradhan Mantri National Dialysis Programme (PMNDP).