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Techs, Hollywood Ratchet Up Support For Illinois Tool Works; Lawsuit Has Huge Implications; Product tying and market power are the key concepts Supreme Court will decide.(INTERNET & TECHNOLOGY)
Byline: BRIAN DEAGON
The U.S. Supreme Court is expected to rule soon in an unusual case being closely watched by people in the entertainment and tech fields, though it involves one of the nation's old-line manufacturers.
The case, Illinois Tool Works vs. Independent Ink, involves the sale of industrial printers by 94-year-old ITW, which requires that customers also buy its ink.
The practice is called product tying, and shades of it have long shadowed various parts of the tech and entertainment industries.
Product tying is an illegal antitrust practice that has enabled courts to bust a swath of monopolies from Hollywood to salt processing. Privately held Independent Ink, based in Gardena, Calif., argues that ITW violates the Sherman Antitrust Act, and prevents it from selling its ink for the ITW printer.
The twist in this case is that ITW admits it's engaged in unlawful product tying. But it wants that law changed. Many entertainment and tech groups agree. Some don't.
Typically, when a company charges another with violating antitrust laws through product tying, the party making the allegation must prove the other has a monopolistic market power to enable just that. But when a patent is involved in tying one product to another, that "market power" is presumed to already exist.
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