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Unformatted text preview: going to steal the technology? The latter- there are contract enforcement problems There is an information problem Was there anything done to deter the customer from abusing the equipment because the customer does bear the costs of abuse, the manufacturer does. The customer has limited liability The machine(s) could be seized if not used enough Minimum usage clause: This part of the contract is solving the IP problem If the end users had to use the machine(s), that reduces the incentive to break the machine down and learn how they work. It is anti-competitive according to the government because it penalizes customers for using a competitors product because the assumption is that if the customer isnt using United Shoes equipment, they are probably using a competitors product...
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- Fall '07