Lotes Co., a manufacturer of USB devices, sued its competitor Foxconn in the United States District Court for the Southern District of New York alleging violations of Section One and Section Two of the Sherman Act [1]. Lotes competes directly with Foxconn in the market for making and selling USB connectors. These USB connectors are sold to manufactures that make and assemble notebooks, desktops, and servers in China for many popular brands. Foxconn had sued Lotes in China to enforce patent rights. Lotes responded with a suit in the U.S. under Section 2 of the Sherman Act, alleging that Foxconn’s patent enforcement proceedings curb the competitive manufacturing of USB connectors, harming U.S. consumers through increased prices across the full range of products incorporating USB
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The U.S. District Court for the Southern District of New York interprets the Foreign Trade Antitrust Improvements Act to preclude antitrust claims by a Chinese manufacturer against its Chinese competitor (Lotes / Foxconn)
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