Celtic International Insurance Company Ltd and Stellar International Ltd and Dotinga Investments B.v

 
FREE EXCERPT

COMPETITION AUTHORITY

CA/6/95

Celtic International Insurance Company Ltd./Stellar International Ltd./Dotinga Investments B.V.

Abstract:

Motor insurance - Computer program - Software development - Intellectual property rights - Section 4 Competition Act 1991

1

Competition Authority Decision of 15 September 1998 relating to a proceeding under Section 4 of the Competition Act, 1991.

2

Notification:CA/6/95:

3

Celtic International Insurance Company Ltd./Stellar International Ltd./Dotinga Investments B.V.

Decision No 519
Introduction
4

1. Notification was made on 28 February 1995 with a request for a certificate under Section 4(4) of the Competition Act, 1991 or, in the event of a refusal by the Competition Authority to issue a certificate, a licence under Section 4(2), in respect of Supplemental Licence Agreement between Stellar International Limited/Dotinga Investments B

5

N.

6

And Celtic International Insurance Limited.

  1. (a)Subject of the Notification

    2. The notification concerns a Supplemental Licence Agreement between Stellar International Limited (Stellar)/Dotinga Investments B.V. (Dotinga) and Celtic International Insurance Limited (Celtic) relating to the licensing by Stellar to Celtic of a method for programming a computer (the Invention) and a computer programme (the Program) to generate quotations for motor insurance and the communication of such quotations for potential customers.

  2. (b) The Parties Involved

    3. Celtic International Insurance Company Limited has its registered offices at Celtic House, Salthill, Galway. The Ultimate Parent of Celtic is Eureko B.V. Eureko B.V. is a holding company with interests in a number of companies involved in the financial services industry, mainly insurance. Eureko Ireland is a holding company for Celtic and Friends Provident. Celtic is involved in the business of non-life insurance. At the end of 1997 Celtic sold its commercial insurance lines business to Hibernian. Celtic is still involved in the car and household insurance sectors. As of the 27 April 1998, Friends Provident was rebranded as Friends First.

    4. Stellar International Limited is an investment company with registered offices at 15 St Mary’s Road, Galway. The parties stated that the ultimate parent of Stellar is Jaques. Dotinga Investments B.V., a wholly owned subsidiary of Stellar, has its registered office at Stravinskylaan 1725 1077, Amsterdam, The Netherlands. The group’s main business is software development and licensing. Stellar International Limited is the sole shareholder in Dotinga which is in turn owned by Jaques (an unlimited liability company). Stellar’s turnover in Ireland during the financial year ending 31st December 1992 was nil. For the financial year ending 31st December 1993 its turnover was [ ]. Celtic’s turnover in Ireland during the financial year ended 31st December, 1992 was IRLI 9,864,000. The parties

    claimed that neither Celtic, Stellar nor Dotinga1 control any other company in the relevant market (as defined) in the State.

  3. (c) The Products and the Market

    5. The parties claimed that there is a significant number of sellers on the Irish computer software market. The parties stated that their belief was that it was not only Irish companies but also overseas software houses and writers who could and do operate in this market. The parties claimed that it is therefore impossible to quantify the exact number of participants but they believed that was correct to say that was a very large number. The parties claimed that the buyers would be mainly those persons (legal or natural) who require computer programs in the non-life insurance sector. This would include not only existing but also potential insurers. The parties further claimed that the potential market is the world because of the easy availability of programs from elsewhere in the world, particularly, the USA.

    6. The parties claimed that the relevant market is the market for the production of computer...

To continue reading

REQUEST YOUR TRIAL