Antitrust law has long prohibited producers with market power from engaging in tying arrangements, agreements in which the sale of a highly desired “tying” product is conditioned on the purchase of a second item.
The Market Power Presumption Revisited: Court to Consider Whether Patents Confer Market Power in Tying Cases
Antitrust law has long prohibited producers with market power from engaging in tying arrangements, agreements in which the sale of a highly desired "tying" product is conditioned on the purchase of a second item. The Supreme Court has held that sellers must exert power over the marketplace to be guilty of illegal tying under the Sherman Act. Does the existence of a patent on a product create a presumption of market power? On June 20, the Supreme Court granted certiorari in <i>Illinois Tool Works Inc. v. Independent Ink, Inc.</i>, 2005 WL 770269, *1 (U.S.) (2005) to consider this question.
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