Part One of a Two-Part Article
In a case closely watched by intellectual property holders, the D.C. Circuit has provided new guidance on the potential antitrust consequences of the failure to disclose patent rights during a standard setting proceeding. In Rambus Inc. v. Federal Trade Commission, No. 07-1086, slip op. (D.C. Cir. Apr. 22, 2008), the court held that the intentional non-disclosure of patent rights on technology eventually incorporated into an industry-wide standard, even if it prevents upfront royalty negotiations, does not harm competition. Consequently, it does not constitute a violation of the Sherman Act.