Industrial Bill of Rights


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Article 7. Government shall make no law which abridges the right of managers or owners to collaborate with suppliers, customers, or competitors in the development of new technologies or new products.


The Right to Collaborate With Others

Improvements in industrial productivity often require changes in technology. Identifying and refining production technology often requires collaboration between suppliers and users of that technology.

Advances in the technology embodied in a product are typically very expensive, whether for a consumer or other producer. The producers can reduce their individual costs by collaborating in the development of some new technology. They all gain the full benefit but share the Cost.

Unfortunately, under current American antitrust laws, collaboration between buyers and sellers of a product is illegal. In at least one classic antitrust case, a firm was convicted for its practice of testing new production machinery by allowing its customers to use that machinery in their factories. The Justice Department argued successfully that this prevented other producers of similar machinery from competing.

Likewise, collaboration between competitors who wish to share the cost of developing a new technology is prohibited. It is argued that other firms in the same industry, who do not take part in the collaboration, will then be hampered in competing. Under current law, the Justice Department can give permission to firms who wish to collaborate on R&D, but without that permission, collaboration is a violation of antitrust laws.

The original intent of the antitrust laws was to prevent producers from conspiring to gouge consumers. The result of these particular interpretations, however, is to harm consumers by raising the cost of R&D and by making it more difficult for sellers of production machinery to meet the needs of the users of that machinery. If anyone at all benefits from these interpretations of the law, it is those producers who, for what ever reason, do not wish to collaborate with suppliers, customers, or competitors. They should have that right. However, they should not have the power to prevent others from voluntarily taking part in activities which benefit themselves and their customers. No one should be given a government guarantee that others will be required to buy his products.


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