nEWS
tors from selling outside their terri-
tories, even when they knew the
actions by those distributors was
upsetting the entire marketplace.
But, according to the report, "In
matters involving exclusive dealer
contracts, rigid territorial and cus-
tomer restrictions, and in other
non-price distributional restraints-
t here are no anti-trust problems in
the vast majority of cases. "
The report written for distributor
members of the association said ,
" The Department [of Justice] has
given manufacturers a green light to
impose non-price marketing re-
straints on wholesaler-distributors."
Also , since the video game
boom, manufacturers have com-
plained that the major distributors
are representing too many equip-
ment lines to faithfully represent
their equipment line. But, with the
new Department of Jusitce guide-
lines, manufacturers may now
legally exclude a distributor from
representing competitive equip-
ment lines.
For i nstance, with more and
more manufacturers entering into
t he video game systems market, a
manufacturer could legally demand
that his distributors represent only
his video game system.
According to the report, such
exclusionary practices would be
permissable. "S uch a restraint," the
report stated , "could require that a
wholesaler-distributor deal only
with a particular manufacturer, thus
precluding carrying a line or any
part of a line of another manufac-
turer."
Concerning territorial restric-
tions , exclusive representation, and
other non-price distributor re-
straints-the report said, "valid
economic and efficiency reasons
require such restrictive arrange-
ments; and , unless there is clear-cut
evidence that consumers are hurt by
such arrangements, they should be
permitted. "
The report said there could be
restrictions placed on manufacturers
with market shares of more than ten
percent, but the report was unequiv-
ocal in stating, " Wholesaler-distrib-
utors who carry more than one
competitive line or carry less than a
full line of a particular manufac-
turer, or who sell in competition
with the manufacturer or in com-
petition with certain other desig-
nated sellers, or who sell outside of a
designated territory could face
termination of their business rela-
tionships, or they can be forced to
change their method of doing busi-
ness considerably."
•
Wico closes game division
Wico Corporation, Niles, Illinois,
has ceased its amusement game
division as of the week of June 17.
Approximately 35 employees in that
division were laid off.
Wico , a leader in the parts field ,
last year began game production . Its
introductions included a pinball ,
Af-Tor, introduced at last year's
AMOA in Chicago , and video
games, Treasure Cove , and joy-
hunter.
Larry Kesselman, vice president
of operations , said the game
PlAY METER. July 15, 1985
division was only temporarily
closed . "As of last week, he said,
" the games division was closed
because of the summer doldrums.
However, we have some new games
in the works, and we may possibly
reopen that divison ."
Kesselman also emphasized that
the employees, including vice presi-
dent of the games division, Ben
Rochetti , were laid • off and not
terminated . Kesselman added that
Wico was still shipping product and
had some open orders and available
product.
•
Memetron introduces
'King Kit'
converison line
Memetron, Inc. of Elk Grove
Village, Illinois, has introduced a
new conversion kit line called King
Kit .
"After numerous suggestions
from operators and distributors,"
said Joe Kaminkow, director of sales
and marketing for the company,
"we redesigned and renamed our
kit line. The new kit line is making its
debut with Memetron's new game,
Atomic Boy.
Memetron acquired the exclu-
sive North American rights to
Atomic Boy from lrem Corp. of
Osaka , Japan.
The game features a player con-
trolled Atomic Boy who must infil-
trate and destroy a Russian master
computer onboard a nuclear killer
satellite.
In separate agreements, Meme -
tron has reached an exclusive agree-
ment with Mylstar to distribute Us vs
Them update kits for M .A.C.H. 3 ,
and has been appointed the distrib-
utor of the excess Atari inventory
purchased by Joyland Amusements
of England.
Atari products involved in the
closeout include TX-1 , Star Wars,
Firefox, Food Fight, Return of the
}edi, and Crystal Castle kits .
On the agreement with Mylstar,
Kaminkow said , " Mylstar never
really started to sell this kit before
Coca-Cola decided to close their
doors. We're delighted to be able to
offer such a high quality conversion
for M .A.C.H. 3 at such a low price."•
WEARE
IN THE
ENTERTAINMENT
BUSINESS.
13