National Cooperative Production Amendments of 1993
PL 103-42 (H.R.1313), enacted 06/10/1993

PUBLIC LAW 103-42—JUNE 10, 1993 
107 STAT. 117 
Public Law 103-42 
103d Congress 
An Act 
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. 
Be it enacted by the Senate and House of Representatives 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 commer-
cialization are critical components of the ability of the United 
States to raise the living standards of Americeins and to compete 
in world markets; 
(2) 
cooperative 
arrangements 
among 
nonaffiliated 
businesses in the private sector are often essential for successful 
technological innovation; and 
(3) the antitrust laws may have been mistakenly perceived 
to inhibit procompetitive cooperative innovation arrangements, 
and so clarification serves a useful purpose in helping to pro-
mote such arrangements. 
(b) PURPOSE.—It is the purpose of this Act to promote innova-
tion, facilitate trade, and strengthen the competitiveness of the 
United States in world markets by clarifying the applicability of 
the rule of reason standard and estabUshing a procedure under 
which businesses may notify the Department of Justice and Federal 
Trade Commission of their cooperative ventures and thereby qualify 
for a single-damages limitation on civil antitrust liability. 
SEC. 3. AMENDMENTS. 
(a) SHORT TITLE.—Section 1 of the National Cooperative 
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(aX6) of the National Cooperative 
Research Act of 1984 (15 U.S.C. 4301(aX6)) is amended— 
(1) in the matter preceding subparagraph (A) by striking 
"research and development"; 
(2) in subparagraph (D) by inserting "or production" after 
"research"; 
(3) in subparagraph (E) by striking "and (D)" and inserting 
"(D), (E), and (F)"; 
June 10, 1993 
[H.R. 1313] 
National 
Cooperative 
Production 
Amendments of 
1993. 
Business and 
industry. 
Commerce and 
trade. 
15 u s e 4301 
note. 
15 u s e 4301 
note. 
National 
Cooperative 
Research and 
Production Act 
of 1993. 
107 STAT. 118 
PUBLIC LAW 103-42—JUNE 10, 1993 
(4) by redesignating subparagraphs (D) and (E) as subpara-
graphs (F) and (G), respectively; 
(5) by inserting after subparagraph (C) the following: 
(D) the production of a product, process, or service, 
**(£) 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 appears and 
inserting "such ventiire". 
(c) EXCLUSIONS.—Section 2(b) of the National Cooperative 
Research Act of 1984 (15 U.S.C. 4301(b)) is amended— 
(1) in the matter preceding paragraph (1) by striking 
"research and development"; 
(2) in paragraph (1) by striking "that is not reasonably 
required to conduct the research and development that is" 
and inserting "if such information is not reasonably required 
to carry out"; 
(3) by amending paragraph (2) to read as follows: 
"(2) entering into any agreement or engaging in any other 
conduct restricting, requiring, or otherwise involving the 
marketing, distribution, or provision by any person who is 
a partv to such venture of any product, process, or service, 
other tnan— 
"(A) the distribution among the parties to such venture, 
in accordance with such venture, of a product, process, 
or service produced by such venture, 
"(B) the marketing of proprietary information, such 
as patents and trade secrets, developed through such ven-
ture formed imder a written agreement entered into before 
the date of the enactment of the National Cooperative 
Production Amendments of 1993, or 
"(C) the licensing, convejdng, or transferring of intellec-
tual property, such as patents and trade secrets, developed 
through such ventiire formed imder a written agreement 
entered into on or after the date of the enactment of the 
National Cooperative Production Amendments of 1993,"; 
(4) in paragraph (3)— 
(A) in subparagraph (A) by striking "or developments 
not developed tiirough" and inserting ", developments, prod-
ucts, processes, or services not developed through, or pro-
duced 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 sucn 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 otherwise involving the 
production (other than the production by such venture) of a 
product, process, or service. 
PUBLIC LAW 103-42—JUNE 10, 1993 
107 STAT. 119 
"(7) using existing facilities for the production of a product, 
process, or service by such venture unless such use involves 
the production of a new product or technology, and 
**i8) 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 required 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, product, process, and service"; 
and 
(3) by adding at the end the following: 
"For the purpose of determining a properly defined, relevant market, 
worldwide capacity shall be considered to the extent that it may 
be appropriate in the circumstances.". 
(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— 
15 use 4303. 
(A) in subsections (aXD, (bXD, (cXl), and (e) by strik-
ing "research and development" each place it appears; 
(B) in subsections (a), (b), and (c) by inserting "of 
this section" after "subsection (d)" each place it appecurs; 
and 
(C) in subsection (e) by striking "the effective date 
of this Act" and inserting "October 11,1984,"; and 
(2) in section 5(a) in the matter preceding paragraph (1) 15 use 4304. 
by striking "research and development". 
(,{) DisCLOSURE.^5ection 6 of the National Cooperative 
Research Act of 1984 (15 U.S.C. 4305) is amended— 
(1) in the heading by striking "RESEARCH AND DEVELOP-
MENT"; 
(2) in subsection (a)— 
(A) by striking "the date of the enactment of this 
Act" and inserting "October 11,1984"; 
(B) in paragraph (1) by striking "and" at the end; 
(C) in paragraph (2) by striking the period at the 
end and inserting ", and"; and 
(D) by inserting the following after paragraph (2): 
"(3) if a purpose of such venture is the production of a 
product, process, or service, as referred to in section 2(aX6XD), 
the identity and nationality of any person who is a party 
to such venture, or who controls any party to such venture 
whether separately or with one or more other persons acting 
as a group for the purpose of controlling such party."; and 
(3) in subsections (a), (dX2), and (e) by striking "research 
and development" each place it appears. 
(g) LIMITATION.—^The National Cooperative Research Act of 
1984 (15 U.S.C. 4301 et seq.) is amended by adding at the end 
the following: 
107 STAT. 120 
PUBLIC LAW 103-42—JUNE 10, 1993 
"APPUCATION OF SECTION 4 PROTECTIONS TO PRODUCTION OF 
PRODUCTS, PROCESSES, AND SERVICES 
15 use 4306. 
"SEC. 7. Notwithstandinjg sections 4 and 6, the protections 
of section 4 shall not apply with respect to a joint venture's produc-
tion of a product, process, or service, as referred to in section 
2(aX6XD), unless— 
"(1) the principal facilities for such production are located 
in the United States or its territories, and 
"(2) each person who controls an^ party to such venture 
(including sucn party itself) is a United States person, or a 
foreign person from a country whose law accords antitrust 
treatment no less favorable to United States persons than 
to such countr}r's domestic i>ersons with respect to participation 
in joint ventures for production.". 
15 u s e 4305 
SEC. 4. REPORTS 
ON JOINT VENTURES AND UNITED 
STATES 
note. 
COMPETmVENESS. 
(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 techno-
logical areas of research, development, and production. 
(b) ANNUAL REPORT BY THE ATTORNEY GENERAL.—In the 
30-
day period beginning at each 1-year interval in the 6-year period 
beginning on the date of the enactment of this Act, the Attorney 
General shall submit to the Committee on the Judiciary of the 
House of Representatives and the Committee on the Judiciary of 
the Senate— 
(1) a Ust of joint ventures for which notice was filed under 
section 6(a) of the National Cooperative Research and Produc-
tion Act of 1993 during the 12-month period for which such 
report is made, including— 
(A) the purpose of each joint venture; 
(B) the identity of each party described in section 
6(aX 1) of such Act; and 
(C) the identity and nationality of each person 
described in section 6(aX3) of such Act; and 
(2) a list of cases and proceedings, if any, brought during 
such period luider 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 GENERAL.—In the 
30-day period beginning at each 3-year interval in the 6-year period 
beginning on the date of the enactment of this Act, the Attorney 
General, after consultation with such other agencies as the Attorney 
General considers to be appropriate, shall siibmit to the Committee 
on the Judiciary of the House of Representatives and the Committee 
on the Judiciary of the Senate a description of the technological 
areas most commonly pursued by joint ventures for production 
for which notice was filed under section 6(a) of the National 
Cooperative 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. 
(d) REVIEW OF ANTITRUST TREATMENT UNDER FOREIGN LAWS.— 
In the three 30-day periods beginning 1 year, 3 years, and 6 years 
PUBLIC LAW 103-42—JUNE 10, 1993 
107 STAT. 121 
after the date of the enactment of this Act, the Attorney General, 
after consultation with such other agencies as the Attorney General 
considers to be appropriate, shall submit to the Committee on 
the Judiciary of the House of Representatives and the Committee 
on the Judiciary of the Senate a report on the antitrust treatment 
of United States businesses with respect to participation in joint 
ventiu*es for production, under the law of each foreign nation any 
of whose domestic businesses disclosed its nationality under section 
6(aX3) of the National Cooperative Research and Production Act 
of 1993 at any time. 
Approved June 10, 1993. 
LEGISLATIVE HISTORY—H.R. 1313: 
HOUSE REPORTS: No. 103-94 (Coram, on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 139 (1993): 
May 18, considered and passed House. 
May 27, considered and passed Senate. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 29 (1993): 
June 10, Presidential remarks.