To what extent should competition law be permitted to intrude into the hallowed halls of IP?IP purists argue that IP regimes are good enough to internally sort out the negative fallouts of excessive monopoly power typically engendered by avaricious IP owners. Intellectual Property Rights (IPR) consists of a bundle of legal rights conferred upon the owner of intangible property to acquire the monopoly to utilize commercially his intellectual creations. Competition Law regulates competition so that there is no adverse effect on the market. IPR grants durational limited monopoly preventing creation of unlimited dominant position in the market. The objectives of competition law is to prohibit abuse of dominant position, formation of anti-competitive agreements and regulating combinations and mergers. IPR also plays a positive role in encouraging innovation, technology creation, promotion of new business etc. therefore the role of IPR is also necessary. Markets are generally governed by different mechanism or system. For simplicity this paper concentrates on two mechanisms, they are free market operation and regulated market operation. In a country with a free market operation, the prices of goods are set freely by consent between buyers and sellers and are free from any intervention from the government or any other regulatory measures. In a regulated market economy, as from the name, it can be deduced that it is controlled by different regulatory bodies. The legislations are one of the chief components of regulatory mechanism which in its concerned areas tries to balance between the free play of monopoly rights and interests of the society.