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Fifth Circuit Affirms Lanham Act and Antitrust Judgment for Franchisor

By Edward Wood Dunham and Erika L. Amarante
May 29, 2008

In Schlotzsky's Ltd. v. Sterling Purchasing and National Dist-ribution Co., Inc. (“Sterling“), 502 F.3d 393 (5th Cir. 2008), the Fifth Circuit reinforced the tough standard for proving an antitrust tying claim against a franchisor and clarified the broad scope of the Lanham Act's unfair competition provision. The decision is important for franchisors defending claims of market power.

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