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Standardization and competitive advantage

Title
Standardization and competitive advantage
Author
Richard H Stern
Date
1/01/2005
(Original Publish Date: 2002)
Abstract
Several commentators have suggested lately that negotiation of licensing terms (particularly royalty-free licensing) during the standards setting process was likely to violate the antitrust laws. Apparently, the theory was that the conduct amounted to a price-fixing conspiracy. However, in recently granting a business review clearance to the American Welding Society (AWS), the Antitrust Division of the US Department of Justice approved the practice of a standards setting organization securing a waiver of intellectual property rights before standardizing on some patented technology.
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