CAC Denounces FTC Assault on Software Company.

The Center for the Advancement of Capitalism has filed public comment in the case of MSC.Software Corporation. The FTC got MSC to sign a "consent agreement" requiring the company to surrender its source code for MSC.Nastran to up to two competitors. CAC opposes the agreement.

FOR IMMEDIATE RELEASE
August 29, 2002
Contact: Skip Oliva
Tel: (202) 223-0071
E-mail: smoliva@moraldefense.com

ALEXANDRIA, VA-The Center for the Advancement of Capitalism (CAC) today filed public comment in the Federal Trade Commission's case against MSC.Software Corporation, a California based producer of advanced engineering software. CAC opposea the consent agreement reached earlier this month between MSC and the FTC.

"Once again we find the FTC has exceeded its authority and blatantly abused power," CAC Director of Federal Affairs Skip Oliva said. "Even by the vague standards of antitrust law, this case should never have been brought. MSC broke no laws and only acted to benefit their shareholders and consumers."

The FTC action accused MSC of illegally monopolizing the market for Nastran, a proprietary version of a public domain source code originally developed by NASA. In 1999, MSC acquired two smaller Nastran manufacturers. As a result of the consent agreement, MSC must now undo those mergers and re-establish two other Nastran producers.

"The FTC's continued violation of private property rights must not stand," CAC Chairman Nicholas Provenzo said. "This agreement had nothing to do with preserving competition. The two companies MSC acquired three years ago were failing operations on the brink of insolvency. But the FTC's consent agreement treats these facts with disdan, insisting MSC must now establish more competition than previously existed."

This is CAC's fifth comment letter to the FTC in 2002 opposing an antitrust-related consent agreement.

A copy of CAC's letter to the FTC on this case can be downloaded from our website in PDF format at: http://www.capitalismcenter.org/Campaigns/Antitrust/MSC_Comment.pdf