Reasonable conditions under §3(5) of the Competition Act, 2002, exempt a person with a valid, registered intellectual property right (‘IPR’) from the application of Indian competition law. They provide a limited exemption, allowing an IPR holder to take steps that are reasonable and necessary for the protection of one’s rights. The position, though, on how the reasonability of such a condition is to be assessed, still remains unsettled. This leads to ambiguity for IPR holders involved in antitrust litigation. It also creates a direct conflict between the objectives of competition law and intellectual property. We highlight the need for determining the extent of reasonability, undertaking an analysis of the trend of interpretations in this regard. In contrast to some sections of opinion and cross-jurisdictional analysis, we propose a development-oriented approach to ensure pro-competitive usage of IPRs.