Originally posted by phatmonky
Actually, this practice is illegal against under the sherman antitrust law.
Yes, wouldn't it be nice if things worked in practice as they do in theory. Cheaters have to be caught and then proven guilty. Proof of guilt is generally hard or impossible to achieve. Also, the accuser often needs a bottomless pit of resources in order to obtain justice; if the accusations can actually be proven.
A couple of realisms from the free market:
It is cheaper to steal than to invent - this is a saying in my industry. Invention is now considered a sucker's game. Anyone who works in an OEM environment knows the difficulty of bringing a new product to market and then protecting their position. Also, with rare exception patents are virtually worthless these days: First you must know of the violation, and then you have to be able to prove that it is a violation. Many small companies simply don't have the resources to pursue such problems; esp. if the problems lie with a company like Microsoft, GM, GE, AOL, etc. When a little company competes with the big company, the big one almost always wins.
I knew the guy who patented a silly kind of thing – a spring loaded lantern mantle…you know for Coleman camping lanterns and the like. No one had ever thought to replace that stupid little string with a spring that simply clamps on. After getting a patent and then making great strides in his marketing, he managed to get his product into a major, very well known retail chain – the holy grail of inexpensive, off the shelf items. Was it Doormart?, Windowmart?, something like that. When his sales reached significant levels his competition became concerned so they threatened to pull all of their products off the shelf with this chain throughout the state if they didn’t pull the spring loaded mantles from the shelves. The inventor had only one product to offer. Guess who lost? Is this the spirit of the free market at work? Here we saw a better product yield to a lesser one due to unfair competition and influence.
Check on the history of the torque wrench. This was in court for something like 30 years. The family of the inventor [vs Craftsman Tools] finally gave up for lack of resources. Are you familiar with the expression: We'll just run them out of money with the appeals process?
I am a total believer in the free market, but I see big problems, sometimes on a daily basis, that need to be addressed. One can virtually get away with murder given the proper wink and nod.