The effect of this ruling was to severely limit the legality of resale restrictions. Restrictive distribution policies, which had been practiced routinely by many firms for years, were now open to attack as violations of the Sherman Act. Yet some ten years earlier, in 1977, another landmark Supreme Court case (Continental TV Inc. et al. v. GTE Sylvania Inc.) overturned the Schwinn case “per se” doctrine and essentially restored the rule of reason doctrine to govern the use of resale restrictions. The court ruled that resale restrictions are not necessarily anticompetitive of competition is viewed in a broader perspective. The court argued that resale restrictions can have “redeeming virtues” by promoting interbrand competition (competition between distributors in the sale of branded products of competing manufacturers), including fostering new companies and new products. Further, by inducing competent and aggressive retailers to undertake new efforts and offer special services and promotions, marking efficiency can be improved and smaller firms can be aided in competing with larger ones. In sum, the court’s position was that while resale restrictions might limit intrabrand competition, they could foster interbrand competition.