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Illinois Tool Works v. Independent Ink

Docket No.: 04-1329
Certiorari Granted: Jun 20 2005
Argued: November 29, 2005
Decided: March 1, 2006

Topics:

Economic Activity, Antitrust

PartyNames: ILLINOIS TOOL WORKS INC. et al. v. INDEPENDENT INK, INC.
Petitioner: Illinois Tool Works Inc., et al.
Respondent: Independent Ink, Inc.

Court Below: United States Court of Appeals for the Federal Circuit

Illinois Tool Works Inc., et al.
v.
Independent Ink, Inc.
547 U.S. 28 (2006)
Question Presented:

Whether, in an action under Section 1 of the Sherman Act, 15 U.S.C. ยง 1, alleging that the defendant engaged in unlawful tying by conditioning a patent license on the licensee's purchase of a non-patented good, the plaintiff must prove as part of its affirmative case that the defendant possessed market power in the relevant market for the tying product, or market power instead is presumed based solely on the existence of the patent on the tying product.

Question:

Under the Sherman Act, when the license to use a patented product is tied to a customer's agreement to use a separate non-patented product, is it assumed that the manufacturer of the patented product has the ability to raise prices above market rates?

Holding: vacated and remanded
Vote: 8-0
Recused: Alito
Opinion By:
Read ILLINOIS TOOL WORKS V. INDEPENDENT INK opinion (PDF)

Other Resources for Illinois Tool Works v. Independent Ink:
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wikipedia.org