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lWH<br />
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lhduitry prolrclrt<br />
$,L$g<br />
world ellhtllatrc<br />
lrqr tlte prejent lCCtlOtr lll(b) the<br />
rcqlllr{tDrl,rt, tlrit mnnqlaetUrers e$tattllBh<br />
al,(l lrtrrlill.tjn riuch rfcotda tuB the StCret,ilfy<br />
hily rplsolilhly rcqulre End also the provlalon<br />
thj,t htflnufacturers shsll permit oti(er8<br />
dcAlSDnLCd b'' thc <strong>Sec</strong>retery to lnEpect spprOprlatc<br />
b(xrrt'i, pirper5, recards flhd decumsnts,<br />
These llr(,!liililnR In the AdnllnlHtratlon trlll<br />
are tnrportilttt meirn8 lor the tjer-rctary to<br />
enauro coBrl)llAnce Utth the Act f,Dd Bhoulcl<br />
not be Ilmlnrrlcd.<br />
td) sFcttoll 113 of the Admlnlstrf,tion ltlll<br />
would reqrrire the <strong>Sec</strong>reLsry to uilllEc t,he<br />
6ervlccs, rcscf,rch, f,nd tesilnB tnc|lliles of<br />
(rther drpilrtmcntB ahd {Ferlclea to the mf,xlnttrrlr<br />
ctt(:nt l)rr(;tlcrblt lil alrder to rvold<br />
duplicf,tlon in facllltles <strong>and</strong> iirrvlces, The<br />
Industry prQplrill w(rrrld f,dd to thlF provlllon<br />
tho rcqulrenrfrlt thtrt t,he <strong>Sec</strong>retary utl-<br />
Ilze the tncllttten of cemDetent JrrlvAtE agen-<br />
Cles t{} llrc mftxlnluh {rttent prnctlcrhte, It<br />
would be undfElrable to llrnlt the flexlbiltty<br />
ol the liectft:rry in tbiE mtrnn{.r, He Ehould<br />
tre lrr* lo tlcc prlvxte facilitlcti to l,he e*tent<br />
he (letermlnes to bc da:atrshle. Moreovcr, ln<br />
thlF (:(ilrL{x:tl{)n we llelleve the AdmlDtBtr8tlotr<br />
blll lih{)Uld cleally stete ttrflt the Becretirry<br />
his p()wer to undcrtnhe re$earch Rnd<br />
devclopmcnl qlf exl)crimenl,al f,UtometrlleB,<br />
In vlcw ol Lltt hlghly concentr^ted sttucture<br />
ol tl)c lrlrlltr:tty thts eddltlon*l BOUrCe Of<br />
rcscarch irrr(j lhoovation would be vSIUEbl€,<br />
te) firct,l{,n l0?tb) [102(l)<br />
(]t the InduFl,ry<br />
btlll would lje rmcnded to require the Sccretary<br />
to l;lve due {x)nFlderFtJon to the crtterln<br />
o! <strong>Sec</strong>tlon 102(h), dlFcuEBed at lenEth tn<br />
pert l2) :rl'(,ve, ln determlulng the etrecttve<br />
dBte lor st:lhdords, Our comments eRrlle!<br />
wlth rerpect to these crtterle apFly here M<br />
well.<br />
(f) The lndustry propffieB to add a new<br />
tecLlon Il{ whlch would provtdc that tn b<br />
4lvll acth)n far infrlngement ol a patent<br />
ol the unlted stAt6a wheie thc dolcndant<br />
estBblishes thnt the lnfrtrlBemeht war ncc$-<br />
6ary for c{trnpllance wlth & lederal motor<br />
vehlcle salety sLRndArd, reltef strsll be COnflned<br />
to a ref,conilble royatLv fqr mehlrlg or<br />
uBtn8 the pitented ltrvehilon, Whue lt appear6<br />
to be lntendtrd thst tlrlr plovlrlon<br />
*pply l() rll petents, "pEt€nts ol the Unttcd<br />
Etrtes Inlght b{: lnterpietcd to mesn Fateht{<br />
owned by the lJDltcd $iEteE Governhebt, ln<br />
whlch ciiie the provislon would hsve very<br />
llmlted efrect. FerhitpE a dlfierent descrlptlon<br />
oI the piltentri cevered Eheuld be choae[.<br />
Thls pr(rvlElon catr uDnccessErlly dult the<br />
lncentlre for Bny mehber o( the lhduttry or<br />
Eny llrdep<strong>and</strong>ent pnrt mf,nufacturer to pu8h<br />
le8e&rch, The p(sstblltty of E now delcrr66<br />
lrr lnlrlngemeDt ectlohB, wlrlch wul bi pasEd<br />
uFon by E nunrber ol dlflerent courts EEd<br />
nrsy lGtrd to dlverBlh8 corrclualonA at to the<br />
"neceaslty'<br />
for llcensiug, would lncreaae patont<br />
lllISatlon <strong>and</strong>, would Bubttantlslly queltly<br />
the exptrtEtlon lor rtward6 ot prospecttve<br />
PAtent holdors-<br />
ellect Ftth reBpect to a hotdf vehlclG or ttcm<br />
Of motor vttrlcle equlpmeht,6tate st<strong>and</strong>trrd8<br />
Wlth reslEct theleto would be null snd yold.<br />
The lndrlstry Eectton l0g(l) would p!e_<br />
ehpt Etatc st<strong>and</strong>8rds only tf they dlfier from<br />
lederal Ettrhd8tdB, conslstent stth the Epproilch<br />
followed tn the TtrG S^tety Blll.<br />
fitlch En Amendment reems deslreble ahd<br />
SAy he neces$Ary to enalrle the rt4teS tO<br />
lmpoBe Bt<strong>and</strong>Erd6 tor u6ed cars<br />
l'he Bureau ol the BudBet ha3 f,dvlsed thAt<br />
thBrG |! no olrJmtlon to thr aubmls8lon ot<br />
thl8 report (rom th€ at8ndpolnt of the AdmlnlEtratlon'a<br />
progr{m,<br />
\qthcerely,<br />
RAusEy CLARK.<br />
Dcput! Attfrncy Gttniral,<br />
DEPART-MFNI or JvsncE.<br />
Atrrl 6, 1966.<br />
IlqfidfEltlc WARREN a"]. M^cNssoN.<br />
A lLalrnf,n, C(frm'l.tttc On<br />
On the other h8nd, we r*ognl4 thFt ther€<br />
hsy tre Eltustlons lil whlch the advencemetrt<br />
ol AAfety requlr€s th8t E pBtented lnventlon<br />
bo *vallatrle gpnertrlly qrr A reEaonablE royalty<br />
ll*l8. Wc bcllcve th&t tl the <strong>Sec</strong>retuT<br />
thould promrrlgrte B Btf,ndstd thtt feqalret<br />
the uHe ol a devlce for whlch there lA but one<br />
pBteht hold$, he Bhould b+ empowcred End<br />
re.lulred to provlde lor compulsofy llcenslnB<br />
of thet patent on & rea8on&ble royalty batt8<br />
oh the requcst Of Bny prospeCttvt llcEnseo-<br />
Il Eltern*tlvc pet8nttd devlces Brc qvallable,<br />
he Ehollld be authortmd ln hIE dleretlon<br />
(upon hla detemlnatlon that evstl8blllty et<br />
I re#oDable ctrt gl equlpment needed lo!<br />
cornpllence wlth the Eafety gt<strong>and</strong>ard8 go<br />
requlreB) to provlde lor compulsory licen8lng<br />
on I reasonable roynlty hdlc ol each auch<br />
sltrmEtlve patent ()tr th6 rcqueEt of ffiy<br />
pf*pecttve llccnsce-<br />
(B) Under Ep.tloE lot(b) ot tho AdslEtstratlon<br />
bill, tf ledeHl rt*ndtrdr Tffi la<br />
(; tffinnte,<br />
Unitcd Stctes Scflete.<br />
Wrsltingtm, D C.<br />
Dr^B EENATon MAcNvsoH; fn responEe to<br />
youi re{tutf;t for cDmment6 upon the teBtlmony<br />
belorc l,he Commlttee On COmSetCe<br />
on AprII 6, 1066 t)y Mr. John S. BuEs6, Vlce-<br />
Fresldent ol the Ford Motor ComDftDv And<br />
Ch8lrmsll ol tha Automoblle Manufaciurert<br />
tSilfety AdmlnlstrEtlve Commlttee, Ee heve<br />
the followlnB prellmlnsy obqetvsttonE.<br />
We hflve not sB yet hrd t,he opportuntty<br />
lor r full conElderatlon ol speclnc le8lBlhttve<br />
proposnl8, or {)( the questloD whethcr, ln the<br />
coDtext of spfclnc leBlalatlen on Jolnt octton,<br />
a hf,qowly dr8ltcd ahtttrust lmmunlty Drovlslon<br />
la etther necessaly or deslrable. -<br />
Iiqwever,<br />
we undcrst<strong>and</strong> Mf. BUgas to have Contended<br />
Eenerally that concern r)ver the appltcatlon<br />
of the BntltruEt l4ws has prcvented<br />
Hhd would prevent Jotht reteErch End other<br />
cmperatlve en(leavors to lorward the Ue Ol<br />
Falety devlccs by membeB ol the automobllE<br />
lndu8try, <strong>and</strong> has Elso preventcd Bnd would<br />
provent the cfchanBe ol lnlormatlon Concernln8<br />
Eppropll8te st<strong>and</strong>eHs ot setety. To<br />
dmurrrcnt IrlB cahcern, Mr. llugas EtBt"d thAt<br />
the autonroblle tilrlustry ls preEently und€r<br />
sntltrutt ltrvestlgf,tlon wlth respcct to e*haust<br />
emlsslon devlceB,<br />
As lor the lnVeFl,l8atlon relerred to by l&,<br />
FluBaR, we notc flrst that lt wRF commencBd<br />
only wtthln the past flftecn mohthB <strong>and</strong><br />
could not have been the bstE lor prevlou8<br />
lndustry lnMtlvlty. More tmportsnily, tbe<br />
chorge8 belng lnveEtlgated by the Antitru6t<br />
DlvlSloh Ere ol c@paratlve efforts to BupFreaB,<br />
not to promot., the UtlltzEildn ol f,uto rmlaalon<br />
dcvlceH potrlble type of abuse Wbtdh<br />
hafdly BtlenBthens th6 cse lor 6 ErEht ol<br />
ahtltrust lmmuhlty,<br />
Hor lA tllefo Rnythln8 pErBUaElvG ln the<br />
Echerrl erEumcnt that tht vaguene88 of the<br />
trntltrutt law8 Freventa thc lomatlon of any<br />
Cooperatlve eltort tO develop EAlety devlces<br />
or to tIChShBe lnlorm8tlon concerntng 6t<strong>and</strong>-<br />
BrdB. TtrG Entttruat laffi do hot prohtbtt<br />
6uch altangement8 phfe<br />
Jolnt efrortB Beem<br />
neceaEBry <strong>and</strong> con8trucilv8 end arc not #-<br />
Compf,hled by undUIy redtr,ctive coll8t€rBl<br />
BErsementa, Iloreov€r. clArlllcatlon Ol the<br />
BppltcBblllty ol the antltfu8t lew8 to onv<br />
parttculsr propoBal hs alwoys becrt reedlly<br />
avallEble by con8ult8tlon wtth the Dcptrrtment<br />
ol Ju3tlco arrd fiubhlEsloh ol a propffial<br />
under the RuBlness ll4vlew hocedure or lor<br />
other revlffi, (AE Bn erample, the msJor<br />
networks End pr.Ar AdSftlatlons requeEted |,lre<br />
Dlvlslon to revlew B pfopffal lor lndustrywlde<br />
coopetatlve cllorts ln the cdmpflEtton<br />
ot reiurhB ln th€ lolthcffilng nailon8l electlenB.<br />
Altef Co$Eultatlon end revlal()n, the<br />
tndustry ws advtBed the Dlvt8ton dld not<br />
lnt.nd to t8lto actlon Undet the antltru8t<br />
ItrvB f,gf,ln8t the arran8emcnt.)<br />
Gehetal Etgument! lor blenkst rt$tutory<br />
tmmuritty frm ihE ihtltruFt l*we for cooperBtlve<br />
e4aleavor6, therelole, do not appo8r<br />
aound. Euch lmunlty Eeeru to bc not only<br />
Vol.I
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