Encyclopedia

Cartel


A cartel is one of the early forms of business alliances; an agreement between independent firms aimed at adapting production capacity utilization to demand, stabilizing prices, distributing spheres of influence on the market, sales, fixing prices and establishing production quotas to maintain a stable flow of capital investments into new industries not protected from foreign competition and potential dumping by foreign firms. Currently, cartels are prohibited by antitrust legislation, although secret cartels continue to exist, including international ones.

Source: "Recommendations on "issues of examining applications for inventions and utility models" (approved by the order of Rospatent dated March 31, 2004, No. 43) (edition from November 30, 2009)

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