LG Electronics, Pioneer, Philips and Sony filed a joint application seeking the Fair Trade Commission’s approval for their joint investment in and combined operation of One-Red LLC, which shall obtain the rights to license all essential patents relating to DVD discs from the four companies and be responsible for licensing those patents.  FTC recently rendered a decision to conditionally approve the combination with five requirements, based on the finding that the combination may reduce transaction costs for local enterprises to obtain license and that the overall economic benefit thus outweighs the disadvantages of lessened competition.  The requirements include prohibition of the four companies from (i) entering agreements relating to the price or quantity of DVD discs; (ii) exchanging important transaction information; and (iii) limiting licensees’ use of the licensed technology, transacting parties, or product price, among other things.