TRIPS Agreement acknowledged that some licensing restrictions contained in a patent license contract may contravene the principles of competition law. Hence, adoption of appropriate measures to address issues concerning patent license which relates with competition law has been expressly provided by the TRIPS Agreement in its various provisions. Malaysia as a signatory of the TRIPS Agreement is expected to comply with the recommendations in addressing issues concerning patent license and competition law. Therefore, it is the purpose of this article to identify extends of compliance by Malaysia with respect to the suggestions provided by the TRIPS Agreement. The result shows that Malaysia adopts the recommendations provided by the TRIPS Agreement in its legislation, particularly the Patents Act 1983.

The common objectives of competition law in most jurisdictions in the world including Malaysia are to enhance economic growth via the competition process and provide protection to consumers. Hence, in order to achieve that purpose, commercial practices are subject to the scrutiny of the competition authority to ensure that their activities comply with the provisions provided by the competition law. Therefore, it is the objective of this article to identify areas in the Competition Act 2010 which are relevant for business operators and to provide suggestions so that infringement of provisions in the Competition Act 2010 can be avoided. This research employs a library based approach which collects data from statutes, decided cases, books and journals.