|   Dan VanCamp over at BetaOS.com
      wrote a nice article
      on the Microsoft trial.  He used an analogy with a company that sells
      beans, to make his point.  I thought he left out a few important
      points, so I decided to fill in the missing details.  
                                   
      Dr. John 
      ________ 
      Mr. Beans: "Lets say that ACME Bean company one day discovered the
      main ingredients to one of its competitors baked beans, its competitor was
      planning to launch the new recipe to its customers shortly and it was sure
      to be a success. ACME wanting to beat its competitor to the punch used the
      recipe and added some of their own flavors to it to make it even
      better.  They then launched the recipe a month before their
      competitor, and sure enough it was a huge hit! Everyone loved ACME beans,
      so much so that over the next year most of the consumers had switched to
      ACME Beans or had at least tried them and contemplated changing. " 
       
      Dr. John:  Behind the scenes, ACME was spreading rumors that the 
      competition's beans were tainted with bacteria, and you might get sick if
      you eat them.  They also put warning labels on their cans that
      clearly stated that if you mixed ACME beans with franks from the
      competition, that you also might get sick.  Of course, this was
      nonsense, but it worked. Fearing illness, most people switched solely to
      ACME products, not because they were better, but because customers thought
      they were safer. 
       
      Mr. Beans: "ACME decided that they would begin to produce their own
      franks and sell them separately so that consumers could add their franks
      to ACME beans. This worked out great and over time people even began to
      prefer their franks even when they liked a different brand of beans,
      because of this ACME decided to start putting their franks in their bean
      recipe before they were ever shipped to the grocers." 
       
      Dr. John: No company could actually do this, because real franks cost more
      than beans, and could not be bundled with beans for free.  Indeed, a
      strong argument could be made here that ACME was willing to loose money
      temporarily for the sole purpose of driving the competition out of
      business, (both beans and franks makers are affected now, as ACME tries to
      expand their influence). Eventually, ACME could charge whatever they
      wanted for 
      franks and beans. 
       
      Mr. Beans: "A class action law suit was filed against ACME by their
      major competitors, saying that they were manipulating the market by
      offering their franks in the beans, and squelching anyone who tried to
      compete with their product. While by design ACME was trying to keep up
      with consumer demand, they at the same time had alienated the other
      manufacturers in to a position where they felt compromised." 
       
      Dr. John: In fact, the competition was filing suit against ACME because
      they had unfairly used their near-monopoly of the bean industry to hurt
      the competition, and had bundled beans and franks and sold them for the
      price of beans in a way that the smaller companies could not afford to do.  
      If foreign companies had done this to US companies, it would be called
      dumping, and it would have been stopped with tariffs faster than you can
      say "franks and beans". 
       
         Further, ACME, once it had become the worlds major supplier
      of baked beans, threatened TV dinner makers with bean shortages, or higher
      priced beans, in order to force them to use ACME products exclusively for
      their beans and franks dinners. 
       
                    :)  |