Justia Antitrust & Trade Regulation Opinion Summaries

Plaintiffs, California grape growers who purchased grapevines covered by the USDA's patents, brought this action to challenge the validity and enforceability of the USDA's patents on three varieties of grapes, as well as the conduct of the California Table Grape Commission (Commission) and the USDA in licensing and enforcing the patents. The court held that the district court correctly held that the USDA was a necessary party to plaintiffs' declaratory judgement claims based on the Patent Act, 35 U.S.C. 1 et seq. The court also held that the waiver of sovereign immunity in section 702 of the Administrative Procedure Act, 5 U.S.C. 500 et seq., was broad enough to allow plaintiffs to pursue equitable relief against the USDA on its patent law claims. The court further held that plaintiffs' claims were sufficient to overcome any presumption of regularity that could apply to a certain USDA employee who was one of the co-inventors of each of the three varieties of grapes. The court finally held that because plaintiffs failed to point to anything other than the issuance of a patent for the Sweet Scarlet grapes that would provide a plausible basis for finding that Sweet Scarlet grapes form a relevant antitrust market, the court upheld the district court's decision dismissing plaintiffs' antitrust claim. View "Delano Farms Co., et al. v. The California Table Grape Comm., et al." on Justia Law

This case arose when the Washington State Department of Health (Department) would not license Yakima Valley Memorial Hospital (Memorial) to perform certain procedures known as elective percutaneous coronary interventions (PCI) where, according to the Department, the community Memorial served did not need another PCI provider. The district court held that Memorial failed to state a claim of antitrust preemption, holding that the PCI regulations were a unilateral restraint on trade not barred by the Sherman Act, 15 U.S.C. 1-7. With regard to Memorial's claims under the dormant Commerce Clause, the district court found Memorial had standing because it alleged it would participate in an interstate market for PCI patients, doctors, and supplies. Nevertheless, the district court found that any burden on Memorial's interstate commercial activity was expressly authorized by Congress' approval of certificate of need regimes, making a dormant Commerce Clause violation impossible. The court agreed that Memorial failed to state a claim of antitrust preemption because the PCI regulations were a unilateral licensing requirement rather than an agreement in restraint of trade. The court also agreed that Memorial had standing under the dormant Commerce Clause, but reversed the district court's judgment on that claim because the Department failed to prove congressional authorization for the PCI regulations. View "Yakima Valley Memorial Hosp. v. WA Dept. of Health, et al." on Justia Law

The FTC sued Lundbeck, Inc., alleging that its acquisition of the drug NeoProfen violated the Federal Trade Commission Act, 15 U.S.C. 41 et seq., the Sherman Act, 15 U.S.C. 1-7, the Clayton Act, 15 U.S.C. 12-27, the Minnesota Antitrust Law of 1971, and unjustly enriched Lundbeck. At issue was whether the district court properly determined that the FTC failed to identify a relevant market where the FTC did not meet its burden of proving that the drugs Indocin IV and Neoprofen were in the same product market. The court held that the district court's finding was not clearly erroneous and affirmed the judgment. View "Federal Trade Commission v. Lundbeck, Inc." on Justia Law

The City of Newkirk and Kay Electric Cooperative both provide electricity to Oklahoma consumers. "When a city acts as a market participant it generally has to play by the same rules as everyone else. It can't abuse its monopoly power or conspire to suppress competition. Except sometimes it can. If the city can show that its parent state authorized it to upend normal competition [. . . ] the city enjoys immunity from federal antitrust liability. The problem for the City of Newkirk in this case is that the state has done no such thing." Kay sued Newkirk alleging that the City engaged in unlawful tying and attempted monopolization in violation of the Sherman Act, 15 U.S.C. 1,2. The district court refused to allow the case to proceed, granting Newkirk's motion to dismiss after it found the City "immune" from liability as a matter of law. Upon review, the Tenth Circuit found that the state did not authorize Newkirk to enter the local electricity market as it did in this case. The Court reversed the district court and remanded the case for further proceedings. View "Kay Electric Cooperative v. City of Newkirk" on Justia Law