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How Companies Use (and Abuse) Law for Competitive Gains
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******************************** How Companies Use (and Abuse) Law for Competitive Gains http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=978 As the main character in Mario Puzo’s novel The Godfather once put it, “The lawyer with his briefcase can steal more than a hundred men with guns.” A new book by Wharton legal studies professor G. Richard Shell, called Make the Rules or Your Rivals Will, addresses a different way that lawyers can affect how business gets done. Shell’s thesis centers on what he calls “competitive legal strategy” – the use of contracts, courts, regulation, and lobbying to secure competitive advantage in business. He shows how Sumner Redstone, Rupert Murdoch, Andy Grove, and Bill Gates, among others, have forced rivals to the bargaining table with litigation, defined the boundaries of their markets with regulations and used politics to fight competitive battles. What it gets down to, he says, is that someone is going to make the rules. The only question is who.
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