Justia Antitrust & Trade Regulation Opinion Summaries

IGT owns patents related to “wheel games,” casino gaming machines containing a secondary bonus game incorporating a spinning wheel. IGT sued Bally for infringement and Bally counterclaimed under state and federal antitrust laws. The district court denied motions for summary judgment on the antitrust issues, granted the motions that the patents were invalid and not infringed, and certified the patent issues for interlocutory appeal. The Federal Circuit affirmed. On remand, the district court granted summary judgment against Bally on its antitrust counterclaims. The Federal Circuit affirmed, stating that the undisputed facts were insufficient to establish the existence of a relevant antitrust market in wheel games. View "IGT v. Alliance Gaming Corp." on Justia Law

Under 35 U.S.C. 292(a) it is unlawful to engage in specified acts of false patent marking, such as affixing a mark that falsely asserts that the item is patented, with intent to deceive the public. Prior to 2011, the statute authorized private parties (relators) to bring a qui tam or informer’s suit for violations, but did not specify procedures or authorize the government to file its own suit to collect the penalty. The 2011 AIA eliminated the qui tam provision, but authorized actions for damages by any person “who has suffered a competitive injury as a result of a violation.” The AIA provides that marking products with expired patents is not a violation and that it applies to all pending cases. In 2010, Brooks sued, alleging that Dunlop marked a guitar string winder with the number of a patent that was both expired and invalidated. The AIA was enacted while the case was stayed, pending the outcome in another case. The district court held that the application of the AIA to pending actions did not violate the Due Process Clause and that the legislation rationally furthered a legitimate legislative purpose. The Federal Circuit affirmed. View "Brooks v. Dunlop Mfg., Inc." on Justia Law

Georgia-Pacific sued Four-U-Packaging, alleging that Four-U’s supply of off-brand paper towels for use in Georgia-Pacific paper-towel dispensers infringed on its trademarks. Four-U distributes paper and janitorial supplies; it does not manufacturer commercial paper systems. Four-U argued that the claims were barred by the ruling in a similar case brought by Georgia-Pacific in Arkansas against a different distributor of generic paper towels. The district court granted summary judgment to Four-U. The Sixth Circuit affirmed. All of the elements of issue preclusion are met and applying the doctrine poses no risk of creating inconsistent rulings. View "Georgia-Pacific Consumer Prods., LP v. Four-U-Packaging, Inc." on Justia Law

SanDisk allegedly controls the market for NAND flash memory, a computer chip that can be erased and reprogrammed that is widely used in consumer products such as digital cameras, mobile phones, and USB drives. Retailers purchase from SanDisk, the patentee, and its licensees. Ritz filed a class action, alleging that SanDisk violated the Sherman Act, 15 U.S.C. 2 by fraudulently procuring patents by failing to disclose prior art and making misrepresentations to the Patent and Trademark Office and established its monopoly by enforcing patents against competitors and by threatening competitors’ customers. SanDisk asserted that Ritz lacked standing to bring a Walker Process antitrust because Ritz faced no threat of an infringement action and had no other basis to bring a declaratory judgment action challenging the patents. The district court rejected the argument, acknowledging that such claims normally are brought by competitors of the patentee as counterclaims in infringement actions, but noting that the Walker Process decision places no limitation on eligible plaintiffs. On interlocutory appeal, the Federal Circuit affirmed that a direct purchaser is not categorically precluded from bringing a Walker Process antitrust claim, even if it would not be entitled to seek declaratory relief against the patentee under the patent laws. View "Ritz Camera & Image, LLC v. Sandisk Corp." on Justia Law

AdvancePCS is a prescription benefits manager for plans sponsored by employers, unions, and others and is retained to achieve savings by negotiating discounts from drug manufacturers, providing mail order service, contracting with retail pharmacies, and electronic processing and paying of claims. Plaintiffs are retail pharmacies that entered into agreements with AdvancePCS that include an agreed reimbursement rate and an arbitration clause. In 2003, plaintiffs filed suit, asserting that AdvancePCS engaged in an unlawful conspiracy with plan sponsors to restrain competition in violation of the Sherman Act, 15 U.S.C. 1; that AdvancePCS used the economic power of its sponsors to reduce the contractual amount it pays below levels prevailing in a competitive marketplace; and that the agreements impose other limitations. For almost a year, AdvancePCS litigated without mentioning arbitration. After denial of a motion to dismiss and reconsideration, AdvancePCS filed an answer with affirmative defenses, then sought to compel arbitration. The court granted the motion. Plaintiffs did not initiate arbitration, but sought dismiss pending appeal. A different judge vacated the order compelling arbitration. The Third Circuit remanded with directions to reinstate the order compelling arbitration. On remand, a third judge granted dismissal. The Third Circuit ruled in favor of plaintiffs, holding that AdvancePCS waived its right to arbitrate. View "In Re: Pharmacy Benefit Mgrs. Antitrust Litig." on Justia Law

Plaintiffs, cigarette vendors, appealed the district court's dismissal of their antitrust action against defendants for lack of subject matter jurisdiction. Plaintiffs challenged taxes imposed by the virtue of the authority vested in an Indian tribe. The court held that the tribe did not implicitly waive its sovereign immunity by agreeing to dispute resolution procedures nor by ceding its authority to Washington State when entering into a cigarette tax contract. The court also held that federal antitrust law did not explicitly abrogate tribal immunity, and the Sherman Antitrust Act, 15 U.S.C. 1, was not a law of general applicability vis-a-vis the tribe. The court further held that tribal officials were protected by the tribe's sovereign immunity because they acted pursuant to the tribe's authority. The court affirmed the district court's alternative ruling that the action was barred by res judicata in light of the prior litigation in state and tribal courts. View "Miller, et al v. Wright, et al" on Justia Law

This dispute between The Saint Consulting Group (Saint) and its liability insurer, Endurance American Specialty Insurance Company (Endurance), stemmed from Endurance's refusal to defend Saint in a lawsuit against Saint in the Northern District of Illinois. The district court dismissed Saint's lawsuit against Endurance based on an exclusion in the policy that stated explicitly that the policy does not apply to any claim based upon or arising out of any actual or alleged violations of the Sherman Anti-Trust Act or any similar provision of any state law. The First Circuit Court of Appeals affirmed, holding (1) because the second complaint alleged that Saint engaged in an anti-competitive scheme the exclusion was triggered; and (2) the policy did not cover the negligent spoliation claim in the first complaint. View "Saint Consulting Group, Inc. v. Endurance Am. Specialty, Inc." on Justia Law

LG Display sought to appeal the district court's rejection of their assertions of federal court jurisdiction under the Class Action Fairness Act of 2005 (CAFA), 28 U.S.C. 1332. South Carolina initiated these cases in state court, alleging violations of the State's Antitrust Act and its Unfair Trade Practices Act (SCUTPA), S.C. Code 39-3-130, -180. The court concluded that CAFA's minimal diversity requirement was not satisfied in either of these cases, and the district court properly remanded them to state court. Accordingly, the petitions for appeal of LG Display were granted and the Remanded Decisions were affirmed. View "AU Optronics Corp. v. State of South Carolina" on Justia Law

Turbo blowers are used in waste water treatment plants to maintain the oxygen dissolved in the water at a level needed by the aerobic bacteria that break down organic waste into carbon dioxide, nitrogen, and water. In 2006 Neuros began offering such blowers to facilities in North America. Two years later, KTurbo began marketing its blowers. In 2008 Neuros won a bid to supply blowers to a Utah plant. Lee, the chief executive officer of KTurbo, was dissatisfied, and slides and related tables that accused Neuros of fraud in its representations to the Utah purchaser. Lee made his presentation to engineering firms that advise treatment plants on which blowers to buy, but apparently failed to win any business away from Neuros. Lee also published his accusations on a website and sent them to the sales representatives. Neuros sued, charging violations of the Lanham Act, the Illinois Uniform Deceptive Trade Practices Act, and defamation. A bench trial resulted in a judgment in favor of Neuros on its defamation claim and an award of $60,000. The Seventh Circuit affirmed the award, but held that the other claims should not have been dismissed. View "Neuros Co., Ltd. v. KTurbo, Inc." on Justia Law

Plaintiffs brought suit against numerous foreign airlines alleging a conspiracy to fix prices in violation of state antitrust, consumer protection, and unfair competition laws. The district court dismissed those claims as expressly preempted by federal law. The Federal Aviation Act, 49 U.S.C. 41713(b)(1), preempted state-law claims "related to a price, route, or service of an air carrier." The court concluded that "air carrier" in that provision applied to foreign air carriers and therefore, affirmed the judgment. View "In re Air Cargo Shipping Services Antitrust Litigation" on Justia Law