A US Court of Appeals finds that the application of misuse of patent standard related to CD-R/CD-RW licensing dispute was flawed (Philips)

Patent Misuse And Antitrust Tying Analysis – Close But Imperfect Substitutes* Federal Circuit Holds That Patent Pools Without Anticompetitive Effects Are Lawful In U.S. Philips Corp. v. International Trade Commission. On September 21, 2005, the Court of Appeals for the Federal Circuit reversed a ruling of the International Trade Commission (“ITC”) which had found that U.S. Philips Corp. (“Philips”) had committed “per se” patent misuse by “tying” the license of “essential” compact disk patents to the license of “nonessential” patents in a package licensing pool. The ITC found misuse both under a “per se” standard, and under the rule of reason. As a threshold matter, the Federal Circuit sustained the ITC’s holding that Philips was not entitled to the statutory “safe harbor” of 35 U.S.C. Sec.

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Don T. Hibner, Jr., A US Court of Appeals finds that the application of misuse of patent standard related to CD-R/CD-RW licensing dispute was flawed (Philips), 21 September 2005, e-Competitions Bulletin Licensing agreements, Art. N° 67414

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