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Intellectual Property Law

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University of Michigan Law School

Michigan Law Review

Journal

1978

Royalties

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Total-Sales Royalties Under The Patent-Misuse Doctrine: A Critique Of Zenith, Michigan Law Review Jun 1978

Total-Sales Royalties Under The Patent-Misuse Doctrine: A Critique Of Zenith, Michigan Law Review

Michigan Law Review

This Note criticizes the Supreme Court's treatment of total-sales royalties. Part I outlines the scope of the patent-misuse doctrine, and Part II describes the development of the Zenith conditioning test. Part III analyzes that test; it suggests that the Zenith opinion is not internally consistent and that courts may not be able to apply the conditioning test satisfactorily. Finally, in response to Justice Harlan's dissenting opinion in Zenith, in which he notes the dearth of literature on the economic consequences of total-sales royalty provisions, 14 Part III undertakes an analysis of those consequences. The analysis demonstrates that total-sales royalty …