JCB to cooperate with Competition Commission

UK-based leading construction gear maker JCB has said it will continue to strengthen its intellectual property rights in a legal manner and would fully co-operate with the Commission.
The statement comes in the wake of Competition Commission ordering a detailed probe after finding prima-facie evidence that JCB India and its subsidiary, JC Bamford Excavators, had abused their dominant position in market for construction equipment.
"We have just got an order from Competition Commission of India and are studying it in detail. We will fully co-operate with the Competition Commission of India as well as the office of Director General.
"We will respond to the allegations appropriately," JCB India's Executive Vice President (Marketing, Business Development & Corporate Affairs) Amit Gossain told PTI.

According to him, JCB has been investing heavily in research and development activities, and creating innovative products and solutions for its customers.
"We will continue to strengthen and protect our intellectual property rights in a legally valid and permissible manner," he added.

The probe comes after a complaint by Bull Machines, also a construction equipment maker, had alleged that JCB India had abused the judicial system to restrain it and its dealers from dealing in "backhoe loaders", a machine used in construction activities.
It is alleged by Bull Machines that JCB India obtained a court order by misrepresenting information and documents.

In an order dated March 11, the Competition Commission of India (CCI) noted that "the predation through abuse of judicial processes presents an increasingly threat to competition, particularly due to its relatively low anti-trust visibility".
"JCB by abusing their dominant position in the relevant market sought to stifle competition in the relevant market by denying market access and foreclosing entry of 'Bull Smart' in contravention of the provisions of...The (Competition) Act," it added.
Accordingly, CCI has directed its investigation arm, the Director General (DG), to carry out a detailed probe.
The case relates to manufacture of a low cost backhoe loader by Bull Machines but before it could formally launch it the was served with an "ex parte interim injunction order granted" by the Delhi High Court.

It was alleged by JCB India to the court that Bull Machines had infringed the design registrations/copyright of the in developing the backhoe loader.
The court order had restrained Bull Machines and its dealers from dealing in the product.