Confusedly, Jack ponders:
[re "market allocation and the Mob]
>So, it differs from a "distributorship" (not sure if that's the right word)
>scenario because two companies are making the agreement, not just one parent
>company deciding who has what market? In other words, let's say parent
>company A writes an agreement with someone, stating that the someone will
>cover area XYZ, exclusively. That's legal. But if two separate companies
>decide how to split an area, it's "market allocation". Right?
Actually, the Sherman Act considers the effect on the marketplace. So, a
company with a unique (even patented) product can enter into agreements with
"sole distributors" and not violate the Act.
Consider two scenarios:
3M's Energy Control Products division sells Energy Control Window Film
(window tint). It sells the product through regional distributors. These
distributors are protected by their agreements from encroachment by others
selling the same product from 3M. This activity does not violate the Act.
There is another company which manufactures and markets a similar line of
products, Lumar something-or-other. 3M calls a meeting with Lumar to discuss
how they are going to carve up the buildings in the cities and countrysides
of America. They discuss the fact that 3M has made strong inroads into The
Northeast, Southwest and Florida. In return for not marketing their products
in the Midwest, Lumar will steer clear of the Northeast and Florida, while
they will share the Southwest. Sounds fair, right? Unfortunately, it most
likely violate the Sherman Act (and others).
The latter scenario affects the market for window film, while the former does
not.
It appears as if M$ was saying, "Look, we are Windows. We will allow you to
take your podunk little UNIX/VMS/Be/etc markets, but we [strongly] suggest
that you give up on the Windows market, that's ours."
--
sjf
---
Scott J. Fine
Fine Hummel, P.C.
Attorneys At Law
7 High Street, Huntington, New York 11743
516.351.2100
<http://www.finehummel.com>
<http://www.ipcafe.net>
____________________________________________________________________
--------------------------------------------------------------------
Join The Web Consultants Association : Register on our web site Now
Web Consultants Web Site : http://just4u.com/webconsultants
If you lose the instructions All subscription/unsubscribing can be done
directly from our website for all our lists.
---------------------------------------------------------------------
