Japan’s Trade Commission Pursues JVC Antitrust Case

Japan’s Fair Trade Commission is investigating Victor Corp. of Japan (JVC) for possible violation of that country’s antitrust laws.

The case illustrates the growing assertiveness of the commission in taking on mainstream Japanese companies and raises fundamental questions about business practices in Japan.

The case may prove to be a landmark, since it could determine the extent to which companies that hold patents covering standard electronic formats can control the sale of products using those formats.

In this case, JVC, which holds patent rights on the widely used VHS video format, is alleged to have prevented C&B;, a small Japanese computer service and product development company, from marketing an improved VHS video recorder it developed in 1986.

Even if the facts of the case are confirmed, the commission would be breaking new legal ground if it concluded that JVC’s behavior constituted an abuse of its market position and therefore a violation of antitrust law.

Commenting on the case, JVC said: “We fully believe that JVC has never done anything that infringes the law.”