Deterring Fraud: The Role of Resale Price Maintenance

1986 ◽  
Vol 59 (3) ◽  
pp. 433
Author(s):  
Robert F. Springer ◽  
H. E. Frech III
2019 ◽  
Vol 39 (1) ◽  
pp. 48-61 ◽  
Author(s):  
Gregory T. Gundlach ◽  
Riley T. Krotz

Resale price maintenance (RPM) is a channel pricing strategy that restricts the price below which a reseller may sell a manufacturer’s product. More than $300 billion in U.S. sales are affected annually by RPM agreements. Adopting a marketing perspective and analyzing trends in distribution arrangements and marketing channel systems, the authors offer predictions regarding the antitrust treatment of RPM following the Supreme Court’s decision in Leegin Creative Leather Products, Inc. v. PSKS, Inc. (2007). This research furthers the understanding of the role of the prior Colgate doctrine in establishing the existence of an RPM agreement and the impact of the new Leegin factors for assessing the competitive effects of RPM. Implications for stakeholders affected by RPM and related unilateral price policies are discussed.


Author(s):  
Adrian Kuenzler

This chapter analyzes existing U.S. Supreme Court case law with respect to, on the one hand, antitrust’s minimum resale price maintenance plans, bundling and tying practices, as well as refusals to deal, and, on the other hand, trademark law’s dilution, postsale, sponsorship, and initial interest confusion doctrines, including design patent and selected areas of copyright law. It demonstrates that courts, based on the free riding hypothesis, have come to protect increasing amounts of artificial shortage of everyday consumer goods and services and corresponding incentives to innovate. Through the preservation of such values, antitrust and intellectual property laws have evolved into “dilution laws” and have focused, almost exclusively, on the refurbishment of the technological supply side of our present-day digital economies rather than also on the human demand side of “creative consumption.”


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