• Federal Circuit Holds Patent Over Tying Product Creates Rebuttable Presumption Of Market Power In Antitrust Tying Action
  • February 14, 2005 | Authors: Peter M. Boyle; Constance K. Robinson
  • Law Firms: Kilpatrick Stockton LLP - Washington Office ; Kilpatrick Stockton LLP - Atlanta Office
  • On January 25, 2005, the Federal Circuit held, in Independent Ink, Inc. v. Illinois Tool Works, Inc., No. 04-1196, 2005 WL 147399 (Fed. Cir. Jan. 25, 2005), in the context of a "tying" claim under the antitrust laws, that a patentee's intellectual property rights trigger a presumption that the patent owner has market power over the patentee's product. This holding conflicts with the prevailing view in cases involving other types of antitrust violations that the mere possession of a patent or copyright does not give rise to a presumption of market power. Intellectual property owners contemplating tying or bundling arrangements will have to consider the increased risk of antitrust liability, because they now bear the burden, should a tying claim be brought, of proving they lack market power.