Supplementary Order Paper No 94

No 94

House of Representatives

Supplementary Order Paper

Tuesday, 9 November 2021

Commerce Amendment Bill

Proposed amendments

Hon Todd McClay, in Committee, to move the following amendments:

Clause 14

In clause 14, new section 36, after subsection (2) (page 8, after line 12), insert:

(3)

For the purposes of this section, a person does not engage in conduct prohibited by subsection (1) by reason only that the person seeks to enforce a statutory intellectual property right, within the meaning of section 45(2), in New Zealand.

In clause 14, new section 36A, after subsection (5) (page 9, after line 4), insert:

(6)

For the purposes of this section, a person does not engage in conduct prohibited by subsection (2) by reason only that the person seeks to enforce a statutory intellectual property right, within the meaning of section 45(2), in New Zealand.

Clause 15 deleted

Delete clause 15 (page 9, lines 16 and 17).

Explanatory note

Important intellectual property safe harbours should not be repealed in this bill. The removal of section 45 from the Commerce Act would remove the protection that firms have when they license IP to a competitor, having a chilling effect on pro-competitive licensing of intellectual property to competitors and other third parties. The repeal of section 36(3) from the Commerce Act will impede the ability of businesses with substantial market power to enforce their intellectual property rights. This Supplementary Order Paper restores the intellectual property safe harbours in the Commerce Act removed by the bill. Reinstating these safe harbours will give businesses confidence to invest in, and license, intellectual property. Robust IP enforcement and licensing protection will ultimately create positive outcomes for New Zealand businesses and consumers, and encourage investment.