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The Firm As Cartel Manager, Herbert J. Hovenkamp, Christopher R. Leslie
The Firm As Cartel Manager, Herbert J. Hovenkamp, Christopher R. Leslie
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Antitrust law is the primary legal obstacle to price fixing, which is condemned by Section 1 of the Sherman Act. Firms that engage in price fixing may try to reduce their probability of antitrust liability in a number of ways. First, members of a price-fixing conspiracy go to great lengths to conceal their illegal activities from antitrust enforcers. Second, because Section 1 condemns only concerted action, firms may structure their relationship to appear to be the action of a single entity that is beyond the reach of Section One.
In its American Needle decision the Supreme Court held that the …
Concerted Refusals To License Intellectual Property Rights, Christina Bohannan, Herbert J. Hovenkamp
Concerted Refusals To License Intellectual Property Rights, Christina Bohannan, Herbert J. Hovenkamp
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Unilateral refusals to license intellectual property rights are almost never antitrust violations, as is true of most unilateral refusals to deal. Concerted refusals to deal are treated more harshly under the antitrust laws because they can facilitate collusion or, in the case of technology, keep superior products or processes off the market.
In its en banc Princo decision a divided Federal Circuit debated whether Congress had protected concerted refusals to license from claims of patent misuse. The majority rejected the dissent’s argument that Congress had no such intent and then went on to hold that an alleged concerted refusal to …