Correlation between the Patent Protection of Intellectual Property and the Competitive Policy

Abstract

The article analyzes some problems of the ratio of the competition policy and the patent protection of intellectual property. Efficient use of Ukraine’s intellectual potential today is one of the main problems that needs state regulation, as an imperfect intellectual property protection system hinders the development of the Ukrainian economy; in particular, it discourages investors in science-intensive industries. Considering a great social significance of medicine markets, the high rates of rising drug prices, the deficiency of certain types of medicines, the need for efficient spending of budget funds, this article reveals the relationship between the intellectual property issues and the competition policy on the example of drug markets as well as regulatory methods, which affects both the availability and the prices of drugs and expands the access to them. Patent protection and competition together play an important role in rapidly developing innovations in drug markets. Indeed, the degree of development of competition and the application of economic methods of regulation and management in the pharmaceutical markets directly depend on the range and price availability of medical care to the population. That is, there is a close connection between patent rights and competition. The article proposes ways of solving problems regulating relations in this area. The key point to exclusive rights is a compromise policy: restricting competition is foreseen in exchange for the development of a new drug or a new use of an already existing drug, which would hardly happen without increasing economic incentives from the provided law of exceptionality. That is, the state should have the task of creating an optimal balance between market competition and administrative management, aimed, first of all, at providing the population with high-quality and affordable medicines in a timely manner.Article received 23.04.2019