Abstract

The recent increase in trademark licensing has drawn the attention of antitrust authorities. This paper focuses on establishing patterns as to the validity, under antitrust law, of “hot” clauses present in medium to long term marketing programs especially in the light of the recent decision of the Supreme Court of the United States in Eastman Kodak Co. v. Image Technical Services, Inc., 504 U.S. 451 (1992). The paper explores the contractual policy of having stable legal standards to ensure an efficient implementation of contractual terms that are immunized from adverse antitrust challenges throughout the term of the contract. This paper shows that the current regulatory framework for tie-ins does not provide the parties with the requisite legal predictability or other workable alternatives to cope with a volatile, and highly prejudicial antitrust pitfall. The paper concludes with a recommendation that the United States should adopt the framework for antitrust law in the European Union to enhance American business people competitiveness in the global market.

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