SRI LANKA Law and Practice Contributed by: Ayanthi Abeyawickrama, Varners
6.4 Abuse of Dominant Position Under the Consumer Affairs Authority Act, it is pro - hibited for any enterprise that holds a dominant posi - tion in the market to abuse that dominance in a way that prevents, restricts or distorts competition. The Act does not define “dominance” using formal market share thresholds, but in practice the CAA assesses whether an enterprise has the ability to act indepen - dently of market forces, competitors and consumers. Forms of abuse may include: • unjustified price discrimination; • imposing unfair purchase or selling prices; However, the current legal regime does not expressly address economic dependency or exploitative abuses in vertical relationships (such as unjustified termina - tion of long-standing supply arrangements or coer - cive exclusivity), and there is no standalone provision dealing with essential facility doctrines or dominant platforms. • limiting production or markets; and • predatory pricing or refusal to deal. The effects-based test applies, meaning that even if the conduct takes place outside Sri Lanka it may be caught under the law if it has the effect of distorting or harming competition in the Sri Lankan market. The CAA has administrative powers to investigate and issue directions but does not have powers to impose substantial penalties, grant injunctive relief or prose - cute offenders through a specialised tribunal. As such, enforcement of unilateral conduct cases remains rare and discretionary.
the patented product or process, without the patent holder’s consent. The term of protection for a patent in Sri Lanka is 20 years from the date of filing the application, subject to the payment of prescribed annual renewal fees. The registration process begins with filing a patent application at the National Intellectual Property Office of Sri Lanka (NIPO), including a description, claims, drawings (if any) and an abstract. The application undergoes a formal examination, followed by a sub - stantive examination and an international-type search report to determine novelty and patentability. If the examination results are favourable and the invention is not challenged during the publication period, the patent is granted and published in the Gazette. Patent enforcement mechanisms include both civil and criminal remedies. The patent holder may file a civil action for infringement, seeking remedies such as injunctive relief, damages, account of profits, or destruction of infringing goods. Infringement may also give rise to criminal liability, including fines and imprisonment in aggravated cases. Prosecution must be commenced within three years of the offence or within two years from its discovery by the prosecutor, whichever occurs first. In addition, Sri Lanka Customs is empowered to detain suspected counterfeit goods at the border upon request by the rights-holder. 7.2 Trade Marks A trade mark is a visible sign capable of distinguishing the goods or services of one enterprise from those of another. It may consist of words, names, symbols, logos, shapes or a combination thereof. Trade mark protection is governed by the Intellectual Property Act, No 36 of 2003, and is granted for an initial term of ten years from the date of application, with the possibility of renewal for successive ten-year periods. The registration process begins with filing an appli - cation at NIPO. The application undergoes a formal and substantive examination. If found acceptable, the mark is published in the Government Gazette, trig - gering a three-month opposition period during which third parties may object to the registration. If no oppo -
7. Intellectual Property 7.1 Patents
A patent is a form of intellectual property granted to protect an invention that is novel, involves an inventive step and is industrially applicable. Patent protection is governed by the Intellectual Property Act, No 36 of 2003. A granted patent confers the exclusive right to prevent others from commercially exploiting an invention, such as making, using, selling or importing
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