Monopoly - Definition - Law Dictionary Home Dictionary Definition monopoly

Definition :

Monopoly [fr. Gk., single, and to sell], the exclusive privilege of selling any commodity. A licence or privilege allowed by the Crown, for the sole buying, selling, making, working, and using of anything whatsoever, whereby the subject is restrained from that liberty of manufacturing or trading which he had before.

Such grants were common before the Stuarts, and were very oppressive and injurious during the reign of Elizabeth. The grievance became so insupportable that, notwithstanding the power of granting monopolies was a valuable part of the prerogative, they were abolished in 1623 by the Statute of Monopolies, 21 Jac. 1, c. 3, which declared all monopolies void, with an exception for 'letters-patent' for fourteen years for the sole working or making of any new manufactures within the realm, to the true and first inventors thereof, provided they be not contrary to law nor mischievous to the State. See LETTERS-PATENT.

--is the power to control prices or exclude competition from any part of the trade or commerce among the producers, Union of India v. Hindustan Development Corporation, (1993) 3 SCC 499 (532).