, 5 tweets, 2 min read Read on Twitter
What do @HalSinger, @geoffmanne, @RichardAEpstein, Keith Hylton, and yours truly have in common? We all believe @FTC blew it in its 1-800 Contacts decision. We joined @WLF to ask the 2nd Cir to vacate FTC’s order. truthonthemarket.com/2019/06/18/the…
In settling trademark disputes, 1-800 and some rivals agreed not to bid on search ads keyed to each other’s trademarks. FTC said this was “inherently suspect” and condemned it under the “quick look” approach. Two problems with that:
First, SCt has required full rule of reason in cases involving more extensive ad restrictions (Cal Dental) and IP settlements threatening greater anticompetitive harm (Actavis). If no QL there, then surely not here. Also, FTC ignored a key procompetitive benefit of restrictions:
1-800 spent big to build online contact lens mkt. Along the way, created a strong brand. Rivals who didn’t spend to build mkt can underprice. In placing ads tied to 1-800’s name, they free-ride. If pioneers who spend to create mkt can lose out to free-riders, less pioneering!
1-800’s trademark settlements were a narrowly tailored effort to prevent inefficient free-riding, while otherwise preserving freedom to advertise. The restrictions were not inherently suspect, and ROR should’ve applied. THE END
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Thom Lambert
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!