DEPARTMENT OF JUSTICE AGREES TO TERMINATE
1957 CONSENT DECREE AGAINST CONNECTICUT FIRM

WASHINGTON, D.C. - A Connecticut manufacturer of industrial generator equipment will no longer be restricted from certain overseas business transactions under an agreement announced today by the Department of Justice's Antitrust Division.

The Department, in documents filed Thursday, June 16, in U.S. District Court in Manhattan, agreed to terminate a 1957 consent decree against Combustion Engineering Inc., a producer of industrial generator equipment.

The 1957 judgment had settled a civil action which alleged that Combustion Engineering, based in Stamford, Connecticut, entered into market allocation and exclusive dealing arrangements with 12 foreign companies that manufactured steam generating and fuel burning equipment.

Anne K. Bingaman, Assistant Attorney General in charge of the Antitrust Division, said the Department agreed to terminate the decree because it was no longer necessary to prevent the competitive harm that brought about the original lawsuit. The market for these products has changed significantly and the technology covered by now-expired patents is in the public domain. In addition, none of the offending license agreements that were in effect in 1957 remain operative.

The original judgment, among other things, prevented Combustion Engineering from enforcing provisions in then-existing patent and technology license agreements with foreign manufacturers of equipment that involved territorial market allocation, cross-licensing and exclusive dealing. The judgment also prohibited future agreements with foreign equipment manufacturers to allocate territories, restrict imports or exports, tie products or services to individual purchases, deal exclusively or cross license.

Comments to the Department and the court regarding the proposed termination of the judgment are invited from the public. They should be addressed to J. Robert Kramer II, Chief, Litigation II Section, Antitrust Division, Department of Justice, 1401 H. Street, N.W., Washington D.C. 20530. Comments must be received within the 60-day period established by court order.

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