ASME files for antitrust protection with Justice Department, Federal Trade Commission

Pursuant to the requirements of Public Law 108-237, ASME in September filed documents with the Department of Justice and the Federal Trade Commission that allow the Society to be afforded limited antitrust liability relief. The filing protects ASME from the treble damages provisions of the nation's antitrust laws, which means that if ASME were to be sued for an antitrust violation, or to be named as a defendant in an antitrust suit, the plaintiff would be unable to collect the customary three-times-damages award should ASME be found liable.

Public Law 108-237 is the official name of the Standards Development Organization Advancement Act of 2004 (H.R. 1086), a bill that unanimously passed both the House and Senate this year, and was signed by President Bush in June.

The bill amends the National Cooperative Research and Production Act of 1993 to provide Standards Development Organizations (SDOs) protection from the treble damages provisions of the nation's antitrust laws, provided they comply with registration rules set forth by the Department of Justice and by the Federal Trade Commission, as required by the law. It also applies the "rule of reason" standard to challenged standards-setting activities, giving courts latitude to consider the wider benefits of those activities when determining whether an antitrust violation has occurred.

The bill also stipulates that those who name SDOs as defendants in antitrust suits, and ultimately lose the case, are required to pay SDO court costs. Making it less attractive to name SDOs to antitrust suits in order to gain larger monetary judgments means that SDOs can concentrate on developing the standards that protect the health and safety of Americans and citizens in countries around the world.

ASME, along with ASTM International and the National Fire Protection Association, worked with congressional members and their staff for more than three years to secure the bill's passage.

ASME member named to NSB by president

President Bush named ASME member Dan Arvizu of Colorado to serve on the National Science Board of the National Science Foundation, for a term expiring May 10, 2010. Arvizu, an ASME member since 1982, is employed by CH2M Hill Co. as a senior vice president. His nomination has to be confirmed by the Senate.

The National Science Board is an independent policy body established by Congress in 1950 with dual responsibilities to oversee and guide the activities of, and establish policies for, the National Science Foundation. It also serves as an independent national science policy body that provides advice to the president and the Congress on policy issues related to science and engineering that have been identified by the president, Congress or the board itself.

The board establishes NSF policies, identifies issues that are critical to NSF's future, approves NSF's strategic budget directions, approves annual budget submissions to the Office of Management and Budget, and approves new programs and major awards.

— Francis Dietz
ASME Government Relations

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