Soft Drink Interbrand Competition Act
PL 96-308 (S.598), enacted 07/09/1980

PUBLIC LAW 96-308—JULY 9, 1980 
94 STAT. 939 
Public Law 96-808 
96th Congress 
An Act 
To clarify the circumstances under which territorial provisions in licenses to manu-
facture, distribute, and sell trademarked soft drink products are lawful under the 
antitrust laws. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled. 
SECTION 1. This Act may be cited as the ''Soft Drink Interbrand 
Competition Act". 
SEC. 2. Nothing contained in any antitrust law shall render 
unlawful the inclusion and enforcement in any trademark licensing 
contract or agreement, pursuant to which the licensee engages in the 
manufacture (including manufacture by a sublicensee, agent, or 
subcontractor), distribution, and sale of a trademarked soft drink 
product, of provisions granting the licensee the sole and exclusive 
right to manufacture, distribute, and sell such product in a defined 
geographic area or limiting the licensee, directly or indirectly, to the 
manufacture, distribution, and sale of such product only for ultimate 
resale to consumers within a defined geographic area: Provided, That 
such product is in substantial and effective competition with other 
products of the same general class in the relevant market or markets. 
SEC. 3. Nothing in this Act shall be construed to legalize the 
enforcement of provisions described in section 2 of this Act in 
trademark licensing contracts or agreements described in that sec-
tion by means of price fixing agreements, horizontal restraints of 
trade, or group boycotts, if such agreements, restraints, or boycotts 
would otherwise be unlawful. 
SEC. 4. In the case of any proceeding instituted by the United States 
described in subsection (i) of section 5 of the Clayton Act (relating to 
suspension of the statute of limitations on the institution of proceed-
ings by the United States) (15 U.S.C. 16(i)) which is pending on the 
date of the enactment of this Act, that subsection shall not apply with 
respect to any right of action referred to in that subsection based in 
whole or in part on any matter complained of in that proceeding 
consisting of the existence or enforcement of any provision described 
in section 2 of this Act in any trademark licensing contract or 
agreement described in that section. 
SEC. 5. As used in this Act, the term "antitrust law" means the 
Sherman Act (15 U.S.C. 1 et seq.), the Clayton Act (15 U.S.C. 12 et 
seq.), and the Federal Trade Commission Act (15 U.S.C. 41 et seq.). 
Approved July 9, 1980. 
July 9, 1980 
[S. 598] 
Soft Drink 
Interbrand 
Competition Act. 
15 u s e 3501 
note. 
Trademark 
licensing 
contract. 
15 u s e 3501. 
15 u s e 3502. 
15 u s e 3501 
note. 
"Antitrust law." 
15 u s e 3503. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-1118 accompanying H.R. 3567 (Comm. on the Judiciary). 
SENATE REPORT No. 96-645 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
May 12-15, considered and passed Senate. 
June 24, H.R. 3567 considered and passed House; passage vacated and S. 598, 
amended, passed in lieu. 
June 28, Senate agreed to House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 28: 
July 10, Presidential statement.