The National Cooperative Research and Production Act  as amended by the Standards Development Organization Advancement Act of 2004 ( and US Antitrust law applicable to standards setting )

Introduction

Standards development can be misused for anti-competitive purposes.  The basic objective of US antitrust laws is to preserve and promote competition and the free enterprise system. Standards processes are subject to these laws.  The antitrust laws are premised on the assumption that private enterprise and competition is the most efficient way to allocate resources, produce the necessary goods at the lowest possible price and assure that high quality products are produced.  The antitrust laws require that business people make independent business decisions without consultation or agreement with competitors. 

The National Cooperative Research and Production Act  (NCRPA)   as amended by the Standards Development Organization Advancement Act of 2004  clarifies the substantive application of the U.S. antitrust laws to joint research and development activities and joint production activities and standards developing organizations. Originally drafted to encourage research and development by providing a special antitrust regime for research and development joint ventures,  the NCRPA also provides degree of antitrust  shelter to consortia and standards developing organizations who follow the NCRPA notification procedures. 

See Notifications under the NCRP

 

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