Search

Comments on reciprocal dealing and the antitrust laws. Definition of Reciprocal dealing as both the use of purchasing power to obtain sales and the practice of preferring one's customers in purchasing. Widespread practice of reciprocal dealing; Economic effects of reciprocal dealing; Implications of antitrust; Application of existing statutes related to reciprocal dealing; Need for new legislation.

The article reports that when action of a patentee who seeks to extend the powers derived from his patent beyond those of the grant is challenged as a violation of the federal antitrust laws, uncertainty may exist as to the appropriate test of legality. Thus, it may be doubtful whether the fact that a patentee has abused his grant will itself be a basis for condemning the practice as illegal per se under the antitrust laws, or whether further inquiry is required under the general antitrust doctrines of illegality per se or the Rule of Reason. Combined with fears that the incidents of patent grants are being narrowed, this uncertainty may force prudent patentees to narrow their exploitation to an area well short of the currently conceived limits of their grants because of the possible drastic consequences of slightly overstepping the patent.

Provides information on the Act of the U.S. Congress of July 2, 1890, entitled "An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies. Prohibitions of the Act; Classification of the cases arising under the law; Provisions of the Act on the monopolizing of the manufacture or of the ownership of articles of trade or commerce.