Franchisors that own intellectual property (patents, copyrights, or trademarks) for use as part of the franchise system have long been confronted with an unfortunate and misguided presumption that their intellectual property rights automatically gave them market power ' an essential element of many antitrust claims ' in the system's patented, copyrighted, or trademarked products and services.
Independent Ink: Supreme Court Abandons Market Power Presumption of Patents
Franchisors that own intellectual property (patents, copyrights, or trademarks) for use as part of the franchise system have long been confronted with an unfortunate and misguided presumption that their intellectual property rights automatically gave them market power — an essential element of many antitrust claims — in the system's patented, copyrighted, or trademarked products and services. From an antitrust perspective, this presumption, although rebuttable, created a significant hurdle for franchisors accused of an illegal tying arrangement — which requires, as a preliminary element, proof of market power in the allegedly tying product (often the franchise itself).
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Erika L. AmaranteThis premium content is locked for LawJournalNewsletters subscribers only
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