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A Unanimous Supreme Court Eases Way For Product Bundling; Ruling in Illinois Tool Works case may have implications for tech and entertainment.(INTERNET & TECHNOLOGY)
Byline: BRIAN DEAGON
The U.S. Supreme Court set a new legal precedent in "product tying" cases with a ruling on Wednesday that gives firms more leeway to bundle products for sale to customers.
In an 8-0 decision, the court sided with Illinois Tool Works, which claimed that patents do not automatically infer that the holder has a so-called "market power" that forces people to buy things they don't want. Justice Samuel Alito didn't participate in the ruling.
The case of Illinois Tool Works vs. Independent Ink focused on ITW's sales of an industrial printer that requires that purchasers also buy its ink. The ruling went against Independent Ink, which claimed ITW was "tying" the sale of its ink with that of its patented printer, thus violating antitrust laws.
ITW agreed with privately held Independent Ink that it was engaged in product tying practices. ITW instead argued that the courts should overturn a 60-year stand that such activity was illegal.
The Supreme Court's decision reverses the burden of proof in product tying cases. No longer is a patent or copyright given the blanket assumption of having market power.
Burden Of Proof
- Antitrust Update - Spring 2006.(Texaco Inc.)(Illinois Tool Works...
- News wire article from: Mondaq Business Briefing March 31, 2006 700+ words
...misuse law (Illinois Tool Works Inc. v. Independent Ink, Inc...Market Power In Illinois Tool Works Inc. v. Independent Ink, Inc., the...judgment to Illinois Tool Works, rejecting Independent Ink's argument...
- A Patent Does Not Automatically Confer Market Power.(Illinois Tool Works Inc....
- News wire article from: Mondaq Business Briefing April 7, 2006 700+ words
...Supreme Court's decision in Illinois Tool Works Inc. v. Independent Ink, Inc., if a patentholder...products and services. Facts In Illinois Tool Works Inc. v. Independent Ink, Inc., Illinois Tool manufactured and marketed printing...
- Illinois Tool Works and Independent Ink Inc. have formed a multi-year...
- Magazine article from: Food & Drug Packaging March 1, 2004 700+ words
Illinois Tool Works and Independent Ink Inc. have formed a multi-year nonexclusive distribution agreement for specific product lines to be manufactured by Independent Ink Inc. and sold through the ITW distribution channels.
- Supreme Court Strikes Down Presumption of Illegality for Tying Arrangements...
- News wire article from: Mondaq Business Briefing March 2, 2006 700+ words
...Court opinion in Illinois Tool Works, Inc. v. Independent Ink, Inc. (No...composition as Illinois Tool's and sold it...as refill ink. Independent Ink brought an antitrust action against Illinois Tool, alleging that...
- Illinois Tool Works: The U.S. Supreme Court Eliminates the Market Power...
- News wire article from: Mondaq Business Briefing March 20, 2006 700+ words
...Supreme Court in Illinois Tool Works Inc. v. Independent Ink, Inc., 126...of any kind. Independent Ink had developed...brought by ITI, Independent Ink alleged, among...Prior to the Illinois Tool Works decision...
- Illinois Tool Works, Inc. v. Independent Ink, Inc.: Supreme Court Puts to Rest...
- News wire article from: Mondaq Business Briefing March 8, 2006 700+ words
...market power. In Illinois Tool Works Inc. v. Independent Ink, Inc., No...case arose from Illinois Tool's requirement...unpatented ink. Independent Ink, a competing seller...tying and that Illinois Tool's patents themselves...
- Supreme Court Abolishes Presumption Of Market Power In Antitrust Patent Tying...
- News wire article from: Mondaq Business Briefing March 28, 2006 700+ words
Illinois Tool Works Inc. v. Independent Ink, Inc., 547 U.S. ____ (2006). For at...s. 1. The Supreme Court's recent holding in Illinois Tool Works Inc. v. Independent Ink, Inc., 547 U.S. ____ (2006), eliminates...
- Patent on Tied Product Does Not Give Rise to Presumption of Market...
- News wire article from: Mondaq Business Briefing March 28, 2006 700+ words
...in the patented product. Illinois Tool Works Inc. v. Independent Ink Inc., 126 S. Ct. 1281...wholly owned subsidiary of Illinois Tool Works, held a patent covering...device's print heads. Independent Ink wanted to sell its own refills...