8505011 Informal Interpretation

Andrew Scanlon

By t/C 6/6/85. Advised (redacted) that both A & B are reportable. AMS



May 24, 1985

Dear Mr. Scanlon:

At your invitation, I am writing to request the views of the Premerger Notification Office regarding whether either of the following hypothetical fact situations would constitute a reportable transaction under the Hart-Scott-Rodino Act of 1976:

(A) Company A proposes to grant an exclusive patent license and technological assistance to company B to manufacture and sell a consumer product. The product is being test-marketed but has not been marketed on a commercial scale by Company A. No physical plant or personnel would be transferred to company B. Assume the size of the person and the size of the transaction tests are satisfied.

(B) Assume all the facts above except that company A retains the right to market and sell such product itself and thus grants a license that is exclusive only with respect to all other firms.

If additional facts are required to determine the reportability of such transaction, please let us know.

Thank you very much.

Sincerely yours,


Andrew Scanlon
Compliance Specialist
Federal Trade Commission
6th & Pennsylvania, N.W.
Room 301
Washington, D.C. 20580


About Informal Interpretations

Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

Learn more about Informal Interpretations.