Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

All Tied Up: Independent Ink, Inc. v. Illinois Tool Works, Inc. and Trident, Inc.

By Scott A. Sher and Charles P. Reichmann
October 06, 2005

On June 20, 2005, the Supreme Court granted certiorari in an important case for intellectual property holders seeking to navigate the sometimes-conflicting dictates of patent and antitrust law. In Independent Ink, Inc. v. Illinois Tool Works, Inc., and Trident, Inc., 396 F.3d 1492 (Fed. Cir. 2005), the U.S. Court of Appeals for the Federal Circuit held that a patent establishes a rebuttable presumption of market power in a tying case brought under Section 1 of the Sherman Act. The ruling has put the Federal Circuit at odds with several lower courts, the Antitrust Division of the Department of Justice, the Federal Trade Commission and a host of academic critics, each of which maintain that patent rights do not, by themselves, give rise to an inference of market power, and that any rule to the contrary has the potential to reduce legitimate incentives to innovate.

The Federal Circuit's ruling has been widely criticized because it makes it easier to bring tying suits against intellectual property holders, thereby further complicating life for companies already ensnared in various patent thickets. Moreover, because the Federal Circuit has taken a particularly expansive view of its own jurisdiction, the ruling in Independent Ink has a potentially greater impact on the law of tying than would a ruling by any other Court of Appeal.

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.