Market Power and Intellectual Property Litigation: Hearing Before the Subcommittee on Courts, the Internet, and Intellectual Property of the Committee on the Judiciary, House of Representatives, One Hundred Seventh Congress, First Session, November 8, 2001

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Page 12 - Walker Process Equipment, Inc. v. Food Machinery & Chemical Corp., 382 US 172 (1965) (patents); American Cyanamid Co., 72 FTC 623, 684-85 (1967), aff'd sub.
Page 9 - To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.
Page 8 - For example, if the Government has granted the seller a patent or similar monopoly over a product, it is fair to presume that the inability to buy the product elsewhere gives the seller market power.
Page 12 - It may be that the device — knee-action swing diffusers — used in sewage treatment systems does not comprise a relevant market. There may be effective substitutes for the device which do not infringe the patent.
Page 20 - ... (2) the arrangement has an adverse effect on competition in the relevant market for the tied product, and (3) efficiency justifications for the arrangement do not outweigh the anticompetitive effects.36 The Agencies will not presume that a patent, copyright, or trade secret necessarily confers market power upon its owner.
Page 12 - Any effort to enlarge the scope of the patent monopoly by using the market power it confers to restrain competition in the market for a second product will undermine competition on the merits in that second market. Thus, the sale or lease of a patented item on condition that the buyer make all his purchases of a separate tied product from the patentee is unlawful.
Page 13 - The Agencies will not presume that a patent, copyright, or trade secret necessarily confers market power upon its owner. Although the intellectual property right confers the power to exclude with respect to the specific product, process, or work in question, there will often be sufficient actual or potential close substitutes for such product, process, or work to prevent the exercise of market power.10 If a patent or other form of intellectual property does confer market power, that market power...
Page 14 - ... conditioned the license of any rights to the patent or the sale of the patented product on the acquisition of a license to rights in another patent or purchase of a separate product, unless, in view of the circumstances, the patent owner has market power in the relevant market for the patent or patented product on which the license or sale is conditioned.
Page 7 - Herbert Hovenkamp, Federal Antitrust Policy: The Law of Competition and Its Practice 136 (1994). Moreover, the federal patent system, and the constitutional grant of authority from which it is derived, are based on the recognition that "[ilnvention is an uncertain business...
Page 13 - [T]he aims and objectives of patent and antitrust laws may seem, at first glance, wholly at odds. However, the two bodies of law are actually complementary, as both are aimed at encouraging innovation, industry and competition.

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