Laws in the US When is it okay to be a monopolist Acquiring Monopoly Status Government and court systems recognize firms and individuals who hold patents or copyrights Patents Patents have a life of 20 years from filing date Design patents last only 14 years ID: 406177
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Slide1
Antitrust Laws in the US
When is it okay to be a monopolist?Slide2
Acquiring Monopoly Status
Government and court systems recognize firms and individuals who hold patents or copyrights.Slide3
Patents
Patents have a life of 20 years from filing date. Design patents last only 14 years.
Patent system is one of the great miracles of the US. Explicit admission during the republic’s embryonic days that idea is king! (Communal property rights do not provide incentive to innovate.)Slide4
Patents
Trade-off is harsh. Patented invention cannot be used without permission (read: $$) for 20 years.
Legal monopoly power.
After patent expires, the invention can be used without penalty.Slide5
Copyrights
Protection of artistic creations.
Copyright lasts 75 years after creator’s death, unless filed before 1978. Then 95 years after creator’s death.
Eldred v. Ashcroft (2003)Slide6
Government Granted Exemptions
Utilities (Economies of Scale need to be utilized b/c of HUGE fixed costs associated with producing power.)
Postal Service- only USPS can carry a letter.
America’s Pastime! (Kennesaw Mountain Landis)Slide7
Natural Monopolies and
Trade Secrets
If you can do it better than anyone else, you’re free to make a go of it in the US.
Coca-Cola guards their trade secret under lock and key. If someone could figure out how to replicate Coca-Cola, then they’re free to sell the product without penalty.
Difference between
pharma
and many food manufacturers. Trade secrets v. Patents
Slide8
Antitrust Law
Sherman Act (1896)
Clayton Act (1914)
Set ground rules for what can and can’t be done in the battlefield of US commerce.
Much gray area for interpretation. Opens up chances for litigation of anti-competitive practices. Slide9
Antitrust Law
Bundling (Microsoft)
Vertical Integration (Standard Oil)
Horizontal Integration (competitors
merging and snuffing
out competition)
Intimidation (mafia)
Dumping (selling below cost; Intel recently)