The biotechnology industry is the most research and development intensive and capital-focused industry in the world. As such, it is very dependent on a robust intellectual property system as well as a strong set of competition laws. Recent experience suggests that intellectual property law and administration in the United States offers both sufficient incentives to innovate and appropriate competitive safeguards, and that the current system is superior to alternative schemes in place in other nations or in the proposals of some commentators. The Federal Trade Commission and the Department of Justice are performing an important service by focusing attention on the emerging intellectual property and competition policy issues that affect American innovators. Scrutiny by these agencies can help further improve an already well-functioning legal regime.