THE ATTEMPTED MERGER BETWEEN GENERAL ELECTRIC AND HONEYWELL: A CASE STUDY OF TRANSATLANTIC CONFLICT

The thwarted merger of General Electric and Honeywell standsout, so far, as the only merger between US companies to be derailedsolely by the European anti-trust authorities, while being clearedby the US Department of Justice (DoJ) and 11 other jurisdictions.In this paper, the authors examine the European Commission'sdecision, and the theories underlying it and compare the Commission'sapproach with that followed by the DoJ. They observe that theCommission and the DoJ had a different assessment of broadlysimilar facts, and attempt to understand the source of the divergence.The authors find that (1) the horizontal effects identifiedby the European Commission rely on a particular perspectiveof market definition, which is debatable (and leaves some questionsunanswered); (2) the anticompetitive effects in the bundlingand Archimedean leveraging theories are not sufficiently robustthat they could be presumed (Accordingly, their likelihood shouldbe supported by strong evidence, but the evidence presentedby the Commission was far from compelling); (3) the deal mayhave involved significant efficiencies that were overlooked.These observations raise the suspicion that the Commission'sdecision may have been affected by bureaucratic capture, suchthat civil servants did not follow the mandate that had beenassigned to them. We find that the procedure enforced at thetime was vulnerable to capture and that the Commission had anincorrect perception of the standard of review that the Courtwould apply to its decision in the context of an appeal. Theaccountability to which the Commission felt subject was thusbiased downwards and enlarged the scope for capture. In addition,some (admittedly casual) evidence regarding the actual unfoldingof the procedure, as well as subsequent reforms of process andprocedure undertaken by the Commission, would support the viewthat significant problems arose in this area.     

Towards Operating Standards for Cube Satellites and Small Spacecraft

The availability of low-cost, high-performance miniaturized electronics, and rocket ride-share capabilities and other factors, have generated a significant increase in the development of small spacecraft. Over a hundred entities and thousands of individuals are now working on numerous small satellites. However, these entities and individuals lack the operations legacy and risk posture of existing satellite manufacturers. Although these new entrants have much less to lose, small satellites may be in a position to damage other, more expensive spacecraft, including manned spacecraft. This article considers the need for and benefits of a community-generated set of small spacecraft operating standards. A prospective pathway to their refinement and adoption, specific elements in such a set of standards, the increased confidence this provides larger operators, and the additional opportunities advanced by standards are discussed.     

Bringing eBay into line

As the largest and best-known internet auction service providerin the global village, eBay has become an immensely popularfacility for offering goods for sale before the widest audience.The advantages of eBay are that it provides a forum for thesale of niche goods where prospective purchasers are difficultto target; by cutting out the retailer (and his mark-up) itenables goods to be sold more cheaply; it is almost impossibleto police effectively; and also provides a veil of anonymity     

A bid for recognition

Last year this journal carried a note¹ on the world's firstauction of intellectual property rights, held in San Franciscobefore the full glare of publicity. Like the Wright Brothers'first manned flight more than a century before it, the firstmanned IP auction attracted a mixture of responses. From thecynical and from those whose interests are served by more traditionalmeans of matching IP vendor and purchaser came words of criticism     

Good stuff, shame about the bad press

A poll of readers of this journal would probably indicate ahigh level of support for the principle that IP should be protected;an awareness of its role in the development and exploitationof new products and services; a belief in its inherent fairnessin balancing the moral and economic needs of its owners andtheir competitors; and a conviction that IP was a positive forcefor the betterment of the world we presently     

When the figures just don't figure

Last year I received from Jean Pire (Gevers & Partners,Belgium) some data concerning the success rate of litigantsin Office for Harmonisation (OHIM) proceedings involving Communitytrade marks and applications. These figures, drawn from Gevers'database of Board of Appeal, Opposition Division and CancellationDivision decisions, provide food for thought. A curious statistic is the rate at which parties to OHIM proceedingsfail to comply     

Strength or weakness?

Doing the electronic rounds, at the tail end of 2007, was amuch-forwarded email circular concerning an article in the 7November issue of China Intellectual Property News by YongshunCheng. The author, a former senior judge and deputy directorof the Intellectual Property Division of the Beijing High People'sCourt, currently directs the Beijing Intellectual Property Institute. According to this circular the article, translated into English,argues that the proposed US patent reform bill