[Federal Register Volume 71, Number 148 (Wednesday, August 2, 2006)]
[Notices]
[Pages 43812-43813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6625]


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DEPARTMENT OF JUSTICE

Antitrust Division


Proposed Termination of Judgments

    Notice is hereby given that Defendant American Watch Association, 
Inc. (``AWA'') and Defendant Foote, Cone & Belding, Inc. (``Foote'') 
have filed a joint motion to terminate both the Final Judgment entered 
against the AWA (``the AWA Final Judgment'') and the Final Judgment 
entered against Foote (``the Foote Final Judgment'') on March 9, 1960 
in United States v. The Watchmakers of Switzerland Information Center, 
Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar 9, 1960) 
(collectively ``the AWA and Foote Final Judgments'') and that the 
Department of Justice (``the Department''), Antitrust Division, in a 
stipulation also filed with the Court, has tentatively consented to 
termination of the AWA and Foote Final Judgments, but has reserved the 
right to withdraw its consent pending receipt of public comments.
    The AWA and Foote Final Judgments, similar to the Final Judgment 
entered in United States v. The Watchmakers of Switzerland Information 
Center, Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar. 9, 1960) 
(``the Watchmakers Final Judgment''), arose out of a 1950s 
investigation of the anticompetitive practices of the Swiss watch 
industry, including Swiss watch manufacturers, Swiss trade 
associations, and their United States importers. The United States 
filed a complaint against more than 20 watch companies and associations 
in 1954, including the AWA and Foote. United States v. The Watchmakers 
of Switzerland Information Center, Inc., Civil Action No. 96-170 
(S.D.N.Y. Complaint filed Oct. 19, 1954). The AWA is an association 
that promotes the growth and health of the U.S. watch industry and 
lobbies to influence regulatory policy. Its members include U.S. watch 
companies as well as U.S. subsidiaries of foreign watch manufacturers. 
Foote is an advertising agency that allegedly acted as an agent for 
some of the defendants.
    The United States made serveral allegations in its complaint. It 
charged that certain Swiss and U.S.

[[Page 43813]]

manufacturers and sellers of Swiss watches and watch parts engaged in a 
conspiracy ``to restrict, eliminate and discourage the manufacture of 
watches and watch parts in the United States, and to restrain United 
States imports and exports of watches and watch parts for manufacturing 
and repair purposes.'' Id. The United States also charged that these 
companies agreed to fix minimum prices for watches and maximum prices 
for repair parts, regulate the use and distribution of watches and 
repair parts, boycott those who violated these restrictions. Id. The 
conspiracy came about through the adoption and enforcement of an 
agreement known as the Collective Convention of the Swiss Watch 
Industry. ``The purpose of the Collective Convention was to protect, 
develop and stablize the Swiss watch industry and to impede the growth 
and competitive watch industries outside of Switzerland.'' United 
States v. The Watchmakers of Switzerland Information Center, Inc., 
1963-1 Trade Cas. (CCH) ]70,600, at 77,426 (S.D.N.Y. Dec. 20, 1962).
    The AWA was named as a defendant because, as a trade association 
whose members included most of the defendant manufacturers and 
importers, there was concern that the AWA could aid the alleged 
conspiracy by policing members' conduct and influencing members to 
participate in the cartel.
    Foote was named as a defendant in the Complaint, becuase as an 
advertising agency and an agent for some of the defendants, there was 
concern that Foote, similar to the AWA, was policing the alleged 
conspiracy and thus aiding the defendants in the enforcement of the 
cartel.
    On March 9, 1960, prior to trial, the United States and the 
defendant importers (not the AWA since it is a trade association, nor 
Foote since it is an advertising agency) named in the complaint agreed 
to enter into the Watchmakers Final Judgment in lieu of going to trial. 
United States v. The Watchmakers of Switzerland Information Center, 
Inc., Trade Reg. Rep. (CCH) ]69,655 (S.D.N.Y. Mar. 9, 1960). Also on 
March 9, 1960, the United States and Defendants AWA and Foote agreed to 
enter into the AWA Final Judgment and the Foote Final Judgment, 
respectively, in lieu of going to trial. Id. Most of the restrictions 
in the AWA and Foote Final Judgments prohibit conduct that each 
company, respectively, could have taken to facilitate the conspiracy.
    The Department has filed with the Court a memorandum setting forth 
the reasons why the United States believes that termination of the AWA 
and Foote Final Judgments would serve the public interest. Copies of 
the AWA's and Foote's joint motion to terminate, the stipulation 
containing the United States' tentative consent, the United States' 
memorandum, and all further papers filed with the Court in connection 
with the AWA's and Foote's joint motion will be available for 
inspection at the Antitrust Documents Group, Antitrust Division, Room 
215, 325 7th Street, NW., Washington, DC 20004, and at the Office of 
the Clerk of the United States District Court for the Southern District 
of New York. Copies of these materials may be obtained from the 
Antitrust Division upon request and payment of the copying fee set by 
Department regulations.
    Interested persons may submit comments regarding the proposed 
termination of the AWA and Foote Final Judgments to the United States. 
Such comments must be received by the Antitrust Division within sixty 
(60) days and will be filed with the Court by the United States. 
Comments should be addressed to John R. Read, Chief, Litigation III 
Section, Antitrust Division, U.S. Department of Justice, 325 7th 
Street, NW., Suite 300, Washington, DC 20530.

Dorothy B. Fountain,
Deputy Director of Operations, Antitrust Division.
[FR Doc. 06-6625 Filed 8-1-06; 8:45 am]
BILLING CODE 4410-11-M