A bill to amend the Federal Trade Commission Act to provide that under certain circumstances exclusive territorial arrangements shall not be deemed per se unlawful.

Provides that nothing contained in the antitrust laws of the United States shall render unlawful the inclusion and enforcement of any trademark licensing contract or agreement, pursuant to which the licensee engages in the manufacture, distribution, and sale of a trademarked soft drink product, or the distribution or sale of a trademarked private label food product, of provisions granting the licensee the sole and exclusive right to manufacture, distribute and sell such product in a defined geographic area or limiting the licensee, directly or indirectly, to the manufacture, distribution, and sale of such product only for ultimate resale to consumers within a defined geographic area.

Provides that the provisions of this Act shall apply only if: (1) such product is in substantial and effective competition with products of the same general class, (2) the licensee is in substantial and effective competition with other vendors of other products of the same general class, and (3) the licensor retains control over the nature and quality of such product as required by the Trademark Act.