Application for proposed divestiture: The Commission has received an application for proposed divestiture from MSC.Software Corporation (MSC), pursuant to a July 6, 2002 agreement and consent order with the FTC. As detailed in the application, which can be found as a link to this press release on the FTC's Web site, MSC has requested Commission approval to divest the "Assets to be Divested" (as that term is defined in the consent order) to Unigraphics Solutions, Inc., a wholly- owned subsidiary of Electronic Data Systems (EDS). These assets include a perpetual, worldwide, royalty-free, non-exclusive license to the August 14, 2002 version of the software program MSC.Nastran, to certain other assets related to that software program, and to all intellectual property rights of any kind acquired by MSC as a result of MSC's acquisitions of Universal Analytics, Inc. (UAI) and Computerized Structural Analysis & Research Corp. (CSAR).
The Commission is accepting public comments on the proposed divestiture until February 3, 2002. Comments should be sent to: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. (FTC File No. 011-0199, Docket No. 9299; staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see press releases dated October 10, 2001 and August 14 and November 1, 2002.)
Commission authorization to send letter regarding used car warranties: The Commission has sent a letter to the National Independent Automobile Dealers Association (NIADA) stating its views on the applicability of the Magnuson-Moss Tie-in Provision to certain types of used car warranties. The letter was sent in response to a request from the NIADA for an FTC opinion regarding split-cost warranties. Such warranties are commonly called "50/50" warranties because they apportion half of the costs for warranty-related repairs to the dealer and half to the buyer. NIADA specifically asked the Commission whether such warranties violate the "tie-in" provision of the Magnuson-Moss Warranty Act, because their terms also require that the selling dealer perform the warranty repairs.
According to the letter, which is available on the Commission's Web site as a link to this release, the Act's tie-in provision (Section 102(c)) and Section 700.10 of the FTC's Interpretations of the Magnuson-Moss Warranty Act do not prohibit 50/50 warranties or other warranties under which the warrantor pays a percentage of the costs for covered repairs from requiring that the warrantor perform all covered repairs. The Commission vote to send the letter to the NIADA was 5-0. (File No. P864207; staff contact is Lemuel W. Dowdy, Bureau of Consumer Protection, 202-326-2981.)