Law Commons^™

Brief Of Amici Curiae 65 Professors Of Law, Business, Economics, And Sports Management In Support Of Respondents, Chris Sagers, Michael A. Carrier, Lisa M. Geary

Law Faculty Briefs and Court Documents

The Alston plaintiffs are college athletes who successfully challenged the NCAA's "amateurism" rules, convincing the lower courts that the rules should be modestly relaxed to limit their effect on competition for athletic talent. Nearly 60 professors of law, business, and economics from around the country joined the brief.

Intellectual Property For Breakfast: Market Power And Informative Symbols In The Marketplace, P. Sean Morris

Cleveland State Law Review

This Article continues to examine an important question: are trademarks a source of market power, or, put differently, when are trademarks an antitrust problem? This fundamental question is a cause of division among antitrust and intellectual property law scholars. However, by raising the question and presenting some scenarios that can provide answers, my hope is that contemporary antitrust and intellectual property scholars can explore some of its implications. As part of my own quest to address this question, I explore the proposition that creative deception and the wealth-generating capacity of trademarks are unorthodox elements that actually contribute to allegations of …

Platforms, American Express, And The Problem Of Complexity In Antitrust, Chris Sagers

Law Faculty Articles and Essays

Everything about Ohio v. American Express was wrong and the adoption of “two-sided platform” reasoning into American antitrust law might be one of its worst, most regrettable wrong turns in decades. That is not because the original theoretical model of two-sided interaction has anything wrong with it at all. It is rather that nothing could be gained by incorporating it that could be worth the result in the American Express case itself, or the difficulty that has likely been invited into antitrust litigation. The consequences are hard to predict, but they may be severely limiting to our already moribund antitrust …

#Lolnothingmatters, Chris Sagers

Law Faculty Articles and Essays

Institutions matter in antitrust, at least as much as ideas. Most antitrust arguments, and especially the contretemps currently enjoying some attention in the popular press, imagine that antitrust problems are short- or medium-term matters, and that they can be corrected with local doctrinal steps. I suggest there is a deeper problem, a phenomenon more deeply inherent in the nature of competition itself. The problem will cyclically recur, so long as institutional brakes are unavailable to keep it at bay. Specifically, it seems that competitive markets are difficult to preserve without some prospective, no-fault rule to control concentration for its own …

Brief Of Antitrust Scholars As Amici Curiae In Support Of Appellees, Supporting Affirmance, Chris Sagers, K. Craig Wildfang, Ryan W. Marth, David Martinez

Law Faculty Briefs and Court Documents

Amici urge affirmance for three principal reasons. First, we elaborate a point to dispel Appellant's suggestion that antitrust somehow does not belong here. Second, we show that ordinary rule of reason treatment was appropriate. Relying rather daringly on a case that it overwhelmingly lost, Appellant asks this Court to find within NCAA v. Board of Regents of Univ. of Okla., 468 U. S. 85 (1984), a rule that its "amateurism" or "eligibility" restraints are "valid...as a matter of law." NCAA Br. at 14, 22. Board of Regents did not say that, and even Appellant's own amici admit it. See Wilson …

Colluding Under The Radar: Achieving Collusion Through Vertical Exchange Of Information, Julia Shamir, Noam Shamir Recanati Graduate School Of Business, Tel Aviv University

Cleveland State Law Review

In the absence of antitrust regulations, rational profit-maximizing firms in an oligopoly may freely act in consort to reach a consensus and to maintain prices above the competitive level. However, in light of potential exposure to antitrust investigations and prospective heavy sanctions, firms attempt to achieve collusive outcomes without resorting to explicit agreements. One mechanism that may promote such tacit collusion is information-sharing; that is, the otherwise competing firms exchange their private information in order to set and maintain supra-competitive prices. Thus far, the attention of the antitrust authorities and scholars has focused on the phenomenon of horizontal information-sharing, i.e., …

O’Bannon V. National Collegiate Athletic Association: Why The Ninth Circuit Should Not Block The Floodgates Of Change In College Athletics, Christopher Sagers, Michael A. Carrier

Law Faculty Articles and Essays

In O’Bannon v. National Collegiate Athletic Ass’n, then-Chief Judge Claudia Wilken of the U.S. District Court for the Northern District of California issued a groundbreaking decision, potentially opening the floodgates for challenges to National Collegiate Athletic Association (NCAA) amateurism rules. The NCAA was finally put to a full evidentiary demonstration of its amateurism defense, and its proof was found emphatically wanting. We agree with Professor Edelman that O’Bannon could bring about significant changes, but only if the Ninth Circuit affirms. We write mainly to address the NCAA’s vigorous pending appeal and the views of certain amici, and to explain our …

Brief Of Amicus Curiae American Antitrust Institute In Support Of Appellants And Reversal Of The District Court's Decision, Federal Trade Commission And State Of Minnesota V. Lundbeck, Inc. Nos. 10-3548 And 10-3549, United States Court Of Appeals For The Eighth District (2011), Christopher L. Sagers, W. Joseph Bruckner, Richard M. Brunell

Law Faculty Briefs and Court Documents

The basis for the District Court’s ruling was its view that cross-price elasticity of demand was “very low” between the two drugs acquired by Lundbeck, and therefore that they could not be in the same relevant market.2 AAI urges reversal on three grounds. First, assuming arguendo that crossprice elasticity was low – even if it were zero – the court’s approach fundamentally misapprehended the law. A lack of price competition between two functionally interchangeable products does not preclude a determination that they are in the same relevant market. Second, regardless of “low” cross-price elasticity, the acquisition removed an actual or …

Standardization And Markets: Just Exactly Who Is The Government, And Why Should Antitrust Care?, Christopher L. Sagers

Law Faculty Articles and Essays

We take for granted that the basic choice in public policy is between allocation of resources by government bureaucracy, on the one hand, or allocation by markets, on the other. But that dichotomy is false, and at least under contemporary circumstances it is more accurate to describe the choice as between allocation by one kind of bureaucracy and allocation by a different kind of bureaucracy. This poses a problem for our antitrust policy, because it lacks any coherent guidance as to how to address those entities and transactions that are not governmental but are also not simply market-governed. This paper …

Why Copperweld Was Actually Kind Of Dumb: Sound, Fury, And The Once And Still Missing Antitrust Theory Of The Firm?, Chris Sagers

Law Faculty Articles and Essays

Since even before Copperweld Corp. v. Independence Tube Corp., 467 U.S. 752 (1984), it has been thought that antitrust needs some "theory of the firm" to inform its application of a "single-entity" defense in Sherman Act section 1 litigation. Not only is that sense mistaken, it is emblematic of the deep misdirection of contemporary antitrust. It shows just how far antitrust has forgotten that it is a law, a practical tool to implement policy choices made through our system of government. Much too much of the time, it seems to fancy itself rather an abstract policy seminar to be …

Much Ado About Possibly Pretty Little: Mccarran-Ferguson Repeal In The Health Care Reform Effort, Christopher L. Sagers

Law Faculty Articles and Essays

Since 1945, the McCarran-Ferguson Act (MFA) has shielded the “business of insurance” from antitrust liability, so long as the challenged conduct is “regulated by State Law” and does not constitute “boycott, coercion, or intimidation.” This law, like the dozens of other statutory antitrust exemptions that still exist for other industries, has more or less always been controversial, and efforts to repeal it date back more than thirty years. This Essay asks two questions: (1) what consequences the pending repeal measures might have if one of them becomes law; and (2) what a close examination of this effort might teach us …

Dagher, American Needle, And The Evolving Antitrust Theory Of The Firm: What Will Become Of Section 1?, Christopher L. Sagers

Law Faculty Articles and Essays

This summer, on the last regularly scheduled sitting of its October 2008 Term, the Supreme Court granted certiorari in a case that could have far-reaching consequences throughout the law of Sherman Act Section 1. In the case under review, American Needle, Inc. v. NFL, the Seventh Circuit, by unanimous panel decision, entered a striking ruling in the long-running debate over whether professional sports leagues can be “single entities” under Copperweld. The court not only said yes, but did so in what is possibly the most likely context in which the member teams could have competed with one another - the …

Competition Come Full Circle? Pending Legislation To Repeal The U.S. Railroad Exemption, Christopher L. Sagers

Law Faculty Articles and Essays

Repeal of the railroad antitrust exemptions has been advocated ever since deregulation of that industry, and bills have been introduced twice to do it. However, there is no particular reason yet to believe railroad exemption repeal will occur in this Congress. The pending bills have not progressed far and have failed before, and they are opposed by the industry. But even if they progress, and assuming there is not also some significant change to the overall railroad regulatory framework, it seems unlikely that antitrust litigation will be very successful or that it will much change the status quo in rail …

Raising The Price Of Pork In Texas: A Few Thoughts On Ghosh, Bush, And The Future Of Antitrust Immunity, Christopher L. Sagers

Law Faculty Articles and Essays

Shubha Ghosh and Darren Bush were personally involved in real-world opposition to the Love Field airline terminal deal, organizing petitioning efforts in Congress and otherwise trying to get it stopped.My comments here basically ride two horses, because Ghosh and Bush raise two important and intriguing problems. First, I think the problem in the Love Field case and other case law they discuss is really just the problem with all of federal antitrust. Antitrust is in a dire state across the board. Lately, we seem near the completion of its euthanasia, which happened pretty much as Adams and Brock predicted, although …

On The Ramifications Of Leegin Creative Leather Products, Inc. Psks, Inc.: Art Tie-Ins Next Essay , Alan Devlin

Cleveland State Law Review

This Essay considers whether the Roberts Court would now overrule the last bastion of the Harvard School-the rule against product tying-if given the opportunity. The economic arguments against per se treatment of tie-ins apply a fortiori to those against resale price maintenance. In addition, applying the line of thought followed by the majority in Leegin leads inexorably to the conclusion that the per se rule proscribing tying arrangements should be similarly overruled. Part II explains the business practice of resale price maintenance and the law's formerly mistaken understanding of its consequences. The Leegin case will then be introduced and compendiously …

The Demise Of Regulation In Ocean Shipping: A Study In The Evolution Of Competition Policy And The Predictive Power Of Microeconomics, Christopher L. Sagers

Law Faculty Articles and Essays

Over its 140 year history, ocean liner shipping has almost always enjoyed an antitrust exemption permitting price-fixing cartels of ocean carriers. The exemption was premised on the belief that problems of cost and capacity inherent in the trade can be resolved only by horizontal collusion. Now that that exemption has been whittled away by deregulatory efforts, the pre- and post-deregulation evidence presents one of the world's rare opportunities for natural experiment on the behavior and effectiveness of collusive cartel pricing. Moreover, because normal and effective competition never really existed prior to 1998, the normative foundation of the antitrust exemption was …

Antitrust Immunity And Standard Setting Organizations: A Case Study In The Public-Private Distinction, Chris Sagers

Law Faculty Articles and Essays

This paper uses an ongoing issue of local legal doctrine as a case study to provide insights into a problem of larger political philosophy: the problem whether the difference between "public" and "private" should be made to matter and, indeed, whether there is a difference at all. The case study is as follows: In our system, state governments are free to fashion their own trade policies in virtually any manner they choose. During the past century there has evolved a complex range of relationships between government and the businesses regulated by those policies, the result often being that businesses themselves …

In Search Of The Golden Years: How Compulsory Licensing Can Lower The Price Of Prescription Drugs For Millions Of Senior Citizens In The United States, Debjani Roy

Cleveland State Law Review

This article will show that compulsory licensing is the best remedy for the escalating cost of prescription drugs in the United States. Section II will provide a historical overview of American pharmaceutical patent law and will introduce the concept of compulsory licensing as a method to decrease the high cost of prescription drugs for senior citizens in the United States. Section III will look at the newly enacted Medicare Prescription Drug and Modernization Act, and state and local government plans to import cheaper brand-name prescription drugs from Canada. Section IV will look at the United States' international support for compulsory …

Can Cleveland Clinic Health System Be Trusted: Whether A Proposed Merger Or Acquisition By Cleveland Clinic Health System Will Substantially Impair The Competitive Health Care Market In Northeast Ohio Resulting In A Violation Of Federal Antitrust Statutes, Matthew T. Polito

Journal of Law and Health

This article analyzes the implications of the Clayton Antitrust Act (Clayton Act) and the Sherman Antitrust Act (Sherman Act) as they pertain to the Cleveland Clinic Health System (CCHS). Part One provides background analysis of these two statutes, and the application of those statutes to mergers in the health care industry. Part Two discusses the elements needed to prove the government's prima facie case. This consists of a discussion of a relevant market, which includes the product and geographic markets. This section also contains a description and analysis of market concentration, measured by the Herfindahl-HIrschman Index (HHI). Part Three provides …

The Legal Structure Of American Freedom And The Provenance Of The Antitrust Immunities, Christopher Sagers

Law Faculty Articles and Essays

It is a reflection of the subtle relationship between legal doctrine and the larger social context it regulates that, on occasion, some humble point of mere theory proves to be the lynchpin of a serious social problem. Often the most pernicious aspect of such a situation will be the very obscuriyy that causes courts to overlook it.

That is emphatically the case with the issue addressed in this paper. Confusion persists over the seemingly academic question whether the so-called "Noerr-Pennington" or "petitioning" immunity, a doctrine in antitrust law which protects persons from being sued when they seek action from their …

The Stifling Of Competition By The Antitrust Laws: The Irony Of The Health Care Industry, John A. Powers

Journal of Law and Health

The text to follow is intended to provide an overview of the legal basis for the imbalance of power currently inherent to the health care industry, suggesting several reasons for its development. It also provides an outline of the current basis for antitrust liability in this country and describes some possible solutions. The most practical and effective means through which to rectify this imbalance would be to enact new federal legislation that would amend the antitrust laws to allow for limited "unionization" of independently practicing physicians for collective bargaining purposes.

Denying Medical Staff Privileges Based On Economic Credentials , Sandra Difranco

Journal of Law and Health

Health care costs are continuing to rise. This forces hospitals to consider the cost and efficiency of each physician when making privileging decisions. However, hospitals cannot deny a competitor physician staff privileges strictly based on economic factors. If this is the only consideration that the hospital utilizes, a denial or restriction of privileges based solely on competitive considerations may expose the hospital to liability under federal antitrust as well as state tort claims. This Note will focus primarily on Ohio laws and statutes. A comparison with other jurisdictions also will be analyzed. This Note will illustrate the complexities and ambiguities …

Is This The Bottom Of The Ninth For Baseball's Antitrust Exemption - A Proposed Removal Of The Exemption And Analysis Of Player Restraints In An Exemption-Free Environment, Brian F. Zeck

Cleveland State Law Review

This note will describe the creation and development of the antitrust exemption granted to Major League Baseball and the continuing vitality of that exemption with respect to labor relations. Part I will detail the creation of the antitrust exemption, the tests articulated by the Supreme Court to determine whether a particular industry violates the antitrust laws, an application of those tests to baseball, and the possibility of finally removing this exemption through legislation in order to bring the law for the industry of baseball into line with other industries. Part II will discuss how the antitrust laws and labor laws …

Legal Issues In Creating Ppo's, Douglas L. Elden, Richard A. Hinden

Journal of Law and Health

The development of alternate health care delivery and reimbursement mechanisms, particularly those known as "Preferred Provider Organizations" (PPOs), raise a multitude of legal issues. Each PPO will exist in different market conditions and under different state laws. Therefore, while this Article seeks to identify and discuss the legal issues, it cannot provide definitive answers. This Article can, however, serve as a guideline or checklist for PPO analysis and provide recommendations and alternatives for dealing with the legal roadblocks that occur in the formation and operation of PPOs. This discussion will be general in nature and cannot substitute for legal advice …

Protest Boycotts As Restraints Of Trade Under The Sherman Act: A Proposed Standard, Francis M. Allegra

Cleveland State Law Review

This paper will maintain that genuine protest boycotts are not anticompetitive because they do not restrict the economic freedom of either the participants or the boycotted entity; nor are they used to enforce an anticompetitive practice, such as collusion or horizontal exclusion. In Part II, cases dealing with unilateral and concerted refusals to deal will be examined to determine under which circumstances refusals to deal are illegal. Part III will analyze two recent protest boycotts cases: Crown Central Petroleum v. Waldman, and Osborn v. Pennsylvania-Delaware Service Station. The legal standards used in these cases will be rejected in Part IV …

Defining Market Under The Clayton Act: Consideration Of Technological Capacity, Carol Szczepanik

Cleveland State Law Review

This article will discuss technological capacity, an economic consideration to which some courts seem to give insubstantial consideration in challenges to section 7 of the Clayton Act. If courts consistently evaluated evidence of technological capacity, section 7 could be more effective in prohibiting mergers that have the effect of lessening competition in an economically significant market.

Defining Market Under The Clayton Act: Consideration Of Technological Capacity, Carol Szczepanik

Cleveland State Law Review

This article will discuss technological capacity, an economic consideration to which some courts seem to give insubstantial consideration in challenges to section 7 of the Clayton Act. If courts consistently evaluated evidence of technological capacity, section 7 could be more effective in prohibiting mergers that have the effect of lessening competition in an economically significant market.

Analysis Of The Ftc Line Of Business And Corporate Patterns Reports Litigation, Douglas P. Whipple

Cleveland State Law Review

Under the auspices of the information gathering authority granted to the Federal Trade Commission (FTC) by the Federal Trade Commission Act, the Commission has developed two corporate report programs entitled "The Line of Business [LB] Report Program" and "The Corporate Patterns Report [CPR] Program." These broad-based statistical surveys solicit from domestic corporations information on financial performance, value of shipments, net manufacturing activities, and significant acquisitions and disposals. The LB and CPR survey orders were issued to hundreds of corporations, mostly giant conglomerates. Predictably, the corporations resisted the report requirements. The inevitable result of this dispute over the LB and CPR …

Franchising As A Device For The Organization, Financing, Control, And Growth Of The Small Business, John Clinton Evans Jr.

Cleveland State Law Review

The franchise system of distribution of goods and services is playing an increasing role in our economy. One marketing authority distinguishes between the product franchise and the franchise of an entire business entity in terms of the role played by each in our complex marketing system of today. Product franchises are given to a few selected dealers in a community, and the distribution of the product is limited to these outlets alone. The other meaning of franchise, as a method of operating an entire business will concern us here.