burden of proof
wex
EVIDENTIARY BURDENS
Illinois Tool Works, Inc. v. Independent Ink, Inc.
Issues
If an antitrust plaintiff alleges that a competitor unlawfully tied a patented product to an unpatented product, must she also prove that the defendant had sufficient power to control the price or quantity of products in the patented good's market?
The Sherman Antitrust Act forbids product-tying arrangements by companies that possess substantial market power in the tying-product's market. While the party alleging the violation must generally prove such market power exists, market power is assumed when a company holds a valid patent on the tying product. Illinois Tool Works ("Illinois") makes the availability of licensing agreements for its patented products contingent on the exclusive use of other, unpatented products. It urges the Court to overturn the patent-based market-power presumption. Independent Ink, an Illinois licensee, claims that the tying arrangement improperly forces it to buy Illinois' ink, despite the availability of cheaper, effective substitutes, thereby stifling beneficial competition. The direct impact of the Court's decision, whether it preserves the status quo or changes its rule, making antitrust violations harder to prove, will be felt by sellers who tie patented products to unpatented ones, firms who buy products from such companies, and the consumers who ultimately purchase products from either company. Indirectly, the case may mark the Roberts Court's first foray into the doctrine of stare decisis, which provides insight into the current Court's view on when and how to defer to its past decisions. As a result, the effects of the decision may be felt in many areas of the Court's jurisprudence which don't deal with the antitrust law.
Questions as Framed for the Court by the Parties
Whether, in an action under the Sherman Act, 15 U.S.C. ? 1, alleging that the defendant engaged in unlawful tying by conditioning a patent license on the licensee's purchase of a non-patented good, the plaintiff must prove as part of its affirmative case that the defendant possessed market power in the relevant market for the tying product, or market power instead is presumed based solely on the existence of the patent of the tying product?
Trident is a wholly owned subsidiary of Illinois Tool Works, Inc. ("Illinois"). Independent Ink, Inc. v. Illinois Tool Works, Inc.
Additional Resources
- LII Law about... Antitrust
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