I
103D CONGRESS
1ST SESSION
H. R. 1313
To amend the National Cooperative Research Act of 1984 with respect to
joint ventures entered into for the purpose of producing a product,
process, or service.
IN THE HOUSE OF REPRESENTATIVES
MARCH 11, 1993
Mr. BROOKS (for himself, Mr. FISH, Mr. EDWARDS of California, and Mr.
BOUCHER) introduced the following bill; which was referred to the Com-
mittee on the Judiciary
A BILL
To amend the National Cooperative Research Act of 1984
with respect to joint ventures entered into for the pur-
pose of producing a product, process, or service.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘National Cooperative
Production Amendments of 1993’’.
SEC. 2. FINDINGS AND PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) technological innovation and its profitable
commercialization are critical components of the
ability of the United States to raise the living stand-
ards of Americans and to compete in world markets;
(2) 
cooperative 
arrangements 
among
nonaffiliated businesses in the private sector are
often essential for successful technological innova-
tion; and
(3) the antitrust laws may have been mistak-
enly perceived to inhibit procompetitive cooperative
innovation arrangements, and so clarification serves
a useful purpose in helping to promote such ar-
rangements.
(b) PURPOSE.—It is the purpose of this Act to pro-
mote innovation, facilitate trade, and strengthen the com-
petitiveness of the United States in world markets by
clarifying the applicability of the rule of reason standard
and establishing a procedure under which businesses may
notify the Department of Justice and Federal Trade Com-
mission of their cooperative ventures and thereby qualify
for a single-damage limitation on civil antitrust liability.
SEC. 3. AMENDMENTS.
(a) SHORT TITLE.—Section 1 of the National Coop-
erative Research Act of 1984 (15 U.S.C. 4301 note) is
amended by striking ‘‘National Cooperative Research Act
of 1984’’ and inserting ‘‘National Cooperative Research
and Production Act of 1993’’.
(b) DEFINITION.—Section 2(a)(6) of the National
Cooperative Research Act of 1984 (15 U.S.C. 4301(a)(6))
is amended—
(1) in the matter preceding subparagraph (A)
by striking ‘‘research and development’’;
(2) in subparagraph (D) by inserting ‘‘or pro-
duction’’ after ‘‘research’’;
(3) in subparagraph (E) by striking ‘‘and (D)’’
and inserting ‘‘(D), (E), and (F)’’;
(4) by redesignating subparagraphs (D) and
(E) as subparagraphs (F) and (G), respectively;
(5) by inserting after subparagraph (C) the fol-
lowing:
‘‘(D) the production of a product, process,
or service,
‘‘(E) the testing in connection with the
production of a product, process, or service by
such venture,’’; and
(6) by striking ‘‘research’’ the last place it ap-
pears and inserting ‘‘such venture’’.
(c) EXCLUSIONS.—Section 2(b) of the National Co-
operative Research Act of 1984 (15 U.S.C. 4301(b)) is
amended—
(1) in the matter preceding paragraph (1) by
striking ‘‘research and development’’;
into on or after the date of the enactment of
the National Cooperative Production Amend-
ments of 1993,’’;
(4) in paragraph (3)—
(A) in subparagraph (A) by striking ‘‘or
developments not developed through’’ and in-
serting ‘‘, developments, products, processes, or
services not developed through, or produced
by,’’;
(B) in subparagraph (B) by striking ‘‘such
party’’ and inserting ‘‘any person who is a
party to such venture’’; and
(C) by striking the period at the end and
inserting a comma, and
(5) by adding at the end the following:
‘‘(4) entering into any agreement or engaging
in any other conduct allocating a market with a
competitor,
‘‘(5) exchanging information among competitors
relating to production (other than production by
such venture) of a product, process, or service if
such information is not reasonably required to carry
out the purpose of such venture,
‘‘(6) entering into any agreement or engaging
in any other conduct restricting, requiring, or other-
wise involving the production (other than the pro-
duction by such venture) of a product, process, or
service,
‘‘(7) using existing facilities in connection with
the production of a product, process, or service by
such venture unless such use is for the production
of a new product or technology, and
‘‘(8) except as provided in paragraphs (2), (3),
and (6), entering into any agreement or engaging in
any other conduct to restrict or require participation
by any person who is a party to such venture, in any
unilateral or joint activity that is not reasonably re-
quired to carry out the purpose of such venture.’’.
(d) RULE OF REASON STANDARD.—Section 3 of the
National Cooperative Research Act of 1984 (15 U.S.C.
4302) is amended—
(1) by striking ‘‘research and development’’ the
first place it appears;
(2) by striking ‘‘and development’’ the last
place it appears and inserting ‘‘, development, prod-
uct, process, and service’’; and
(3) by adding at the end the following:
‘‘For the purpose of determining a properly defined, rel-
evant market, worldwide capacity shall be considered to
the extent that it may be appropriate in the cir-
cumstances.’’.
(e) TECHNICAL AND CONFORMING AMENDMENTS.—
The National Cooperative Research Act of 1984 (15
U.S.C. 4301 et seq.) is amended—
(1) in section 4—
(A) in subsections (a)(1), (b)(1), (c)(1),
and (e) by striking ‘‘research and development’’
each place it appears; and
(B) in subsection (b) by inserting ‘‘of this
section’’ after ‘‘subsection (d)’’; and
(2) in section 5(a) in the matter preceding
paragraph (1) by striking ‘‘research and develop-
ment’’.
(f) DISCLOSURE.—Section 6 of the National Cooper-
ative Research Act of 1984 (15 U.S.C. 4305) is amend-
ed—
(1) in the heading by striking ‘‘RESEARCH AND
DEVELOPMENT’’;
(2) in subsection (a)—
(A) in paragraph (1) by striking ‘‘and’’ at
the end,
(B) in paragraph (2) by striking the period
at the end and inserting ‘‘, and’’, and
(C) by inserting the following after para-
graph (2):
‘‘(3) if a purpose of such venture is the produc-
tion of a product, process, or service, as referred to
in section 2(a)(6)(D), the identity and nationality of
any person who is a party to such venture, or who
controls any party to such venture whether sepa-
rately or with one or more other persons acting as
a group for the purpose of controlling such party.’’;
and
(3) in subsections (a), (d)(2), and (e) by strik-
ing ‘‘research and development’’ each place it ap-
pears.
(g) LIMITATION.—The National Cooperative Re-
search Act of 1984 (15 U.S.C. 4301 et seq.) is amended
by adding at the end the following:
‘‘APPLICATION OF SECTION 4 PROTECTIONS TO
PRODUCTION OF PRODUCTS, PROCESSES, AND SERVICES
‘‘SEC. 7. Notwithstanding sections 4 and 6, the pro-
tections of section 4 shall not apply with respect to a joint
venture’s production of a product, process, or service, as
referred to in section 2(a)(6)(D), unless—
‘‘(1) the principal facilities for such production
are located in the United States or its territories,
and
‘‘(2) each person who controls any party to
such venture (including such party itself) is a United
States person, or a foreign person from a country
whose law accords antitrust treatment no less favor-
able to United States persons than to such country’s
domestic persons with respect to participation in
joint ventures for production.’’.
SEC. 4. REPORTS ON JOINT VENTURES AND UNITED
STATES COMPETITIVENESS.
(a) PURPOSE.—The purpose of the reports required
by this section is to inform Congress and the American
people of the effect of the National Cooperative Research
and Production Act of 1993 on the competitiveness of the
United States in key technological areas of research, devel-
opment, and production.
(b) ANNUAL REPORT
BY
THE ATTORNEY GEN-
ERAL.—In the 30-day period beginning at each 1-year in-
terval after the date of the enactment of this Act, the At-
torney General shall submit to the Committee on the Judi-
ciary of the House of Representatives and the Committee
on the Judiciary of the Senate—
(1) a list of joint ventures for which notice was
filed under section 6(a) of the National Cooperative
Research and Production Act of 1993 during the 12-
month period for which such report is made, includ-
ing the purpose of each joint venture and the iden-
tity and nationality of each party to such joint ven-
ture as described in such section; and
(2) a list of cases and proceedings, if any,
brought during such period under the antitrust laws
by the Department of Justice, and by the Federal
Trade Commission, with respect to joint ventures for
which notice was filed under such section at any
time.
(c) TRIENNIAL REPORT BY THE ATTORNEY GEN-
ERAL.—In the 30-day period beginning at each 3-year in-
terval after the date of the enactment of this Act, the At-
torney General, after consultation with such other agen-
cies as may be appropriate, shall submit to the Committee
on the Judiciary of the House of Representatives and the
Committee on the Judiciary of the Senate—
(1) a description of the technological areas of
research, development, and production most com-
monly pursued by joint ventures for which notice
was filed under section 6(a) of the National Cooper-
ative Research and Production Act of 1993 during
the 3-year period for which such report is made, and
an analysis of the trends in the competitiveness of
United States industry in such areas; and
(2) an update of the report submitted by the
Attorney General under subsection (d) to reflect
changes in foreign law’s antitrust treatment of joint
ventures.
(d) REVIEW
OF ANTITRUST TREATMENT UNDER
FOREIGN LAWS.—Not later than 1 year after the date of
enactment of this Act, the Attorney General, after con-
sultation with such other agencies as may be appropriate,
shall submit to the Committee on the Judiciary of the
House of Representatives and the Committee on the Judi-
ciary of the Senate a report on the antitrust treatment
of United States businesses that are parties to joint ven-
tures under the law of each foreign nation whose domestic
businesses filed notice under section 6(a) of the National
Cooperative Research and Production Act of 1993 at any
time.
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