Antitrust Advantages to Joint Ventures under the National Cooperative Research and Production Act
National Cooperative Research and Production Act, joint ventures, antitrust
The National Cooperative Research and Production Act offers many benefits to parties considering engaging in cooperative activities. The benefits offered can substantially reduce the antitrust risks of cooperative activities. The provisions of the Act not only make it less likely that such activities will be subject to legal challenges, but also make any legal challenge less risky. Risk is reduced by removing the threat of a per se attack that, even if it were ultimately unsuccessful, would impose on joint ventures the time and cost of arguing the inapplicability of the per se rule, perhaps through several appeals. Litigation risk is also reduced by reducing the possible damage award to single instead of treble damages. This in turn, along with the threat of paying defense costs, provides additional disincentive to any potential plaintiff considering bringing suit to challenge venture activities.
Veronica Dougherty, Antitrust Advantages to Joint Ventures under the National Cooperative Research and Production Act, 44 Antitrust Bulletin 1007 (1999)