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IP News

By Compiled by Eric Agovino
March 30, 2006

Supreme Court Rejects Per Se Rule That a Patent Confers 'Market Power' in Antitrust Cases

On March 1, 2006, the U.S. Supreme Court issued its decision in Illinois Tool Works Inc. v. Independent Ink, Inc., 126 S. Ct. 1281 (2006) and eliminated the presumption that a patent confers market power on the patent owner in antitrust 'tying' cases. Under the new test, an antitrust plaintiff must provide proof that the defendant has market power in the tying product.

In this case, Trident, Inc., a subsidiary of Illinois Tool Works, Inc., manufactures printheads and ink for use in its printheads. The printheads are patent protected, but the ink is not. Trident required manufacturers who licensed its printhead technology to only purchase Trident ink. Independent Ink, which manufactures ink compatible with Trident printheads, sued Trident alleging that Trident violated Section 1 of the Sherman Act by tying sales of its non-patented ink to its patented printheads.

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