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Copyright 2011 Pearson Education, Inc.

, publishing as Prentice Hall

Legislation provides a level


playing field for companies that
may not otherwise be able to
compete

Well-developed and effective


marketing plans usually avoid
most legal issues

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Protect companies from each


other

Protect consumers

Protect the interests of society

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

When a company owns another


company in the same market in an
attempt to control the company so
that competition is reduced
Not necessarily illegal for one
company to own another company in
the same market
However, it is illegal to use that
ownership to reduce competition and
choice

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

When a company has members


of its board of directors serve on
the board of another company.
Companies that compete in the
same market cannot have
common directors such that
actions would lessen
competition in their markets.
Key: what is a market?

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

When a manufacturer
attempts to dictate
the resale price of an
item generally illegal
Manufacturers may
suggest resale
prices

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

When a company refuses to restock


or supply associated services to a
dealer that has not followed
suggested pricing guidelines
Refusal to deal is generally illegal
Courts have recognized the right of a
seller to sell or not sell to whomever
it desires, as long as the reason is
not to fix prices or restrain trade

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

Major issue B-2-B marketers will face


o Application of Robinson-Patman Act

Occurs when a supplier sells the


same product to the same class of
buyers at different prices such that it
reduces competition in the buyers
market
Selling products at different prices
to customers that are not in
competition with one another is not
considered discriminatory

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

1. Patents
2. Copyrights
3. Trade

Secrets

4. License
5. Joint

Venture

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

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Protection granted by the


federal government to inventors
of original products, processes,
or compositions of matter.
Design patents last 14 years.

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

11

Protection for the original works of


authors, musicians and
photographers.
Protect the expression of an idea,
not the underlying idea itself.
Copyrights are granted to
individuals for their lifetimes plus
fifty years.

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

12

A process, technique, or competitive


advantage whose owner has chosen not
to seek legal protection in order to avoid
disclosure.
Cannot be something that is common
knowledge, and the owner must have
taken reasonable efforts to keep the
trade secret a secret.
Owners are not able to license, sell, or
trade them with the same degree of legal
protection as patents or copyrights.

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

13

Permission to use an asset as


ones own without any right of
ownership
Granted by the owner of the asset

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

14

Organization where two firms


combine to approach a particular
market or share a particular
technology.
Venture operates as an
independent business.

Copyright 2011 Pearson Education, Inc., publishing as Prentice Hall

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