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Antitrust and Trade Regulation

All Faculty Scholarship

2011

Blocking patents

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Concerted Refusals To License Intellectual Property Rights, Christina Bohannan, Herbert J. Hovenkamp Jan 2011

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 …