Top Stories
For this month’s Top Stories, we are republishing two very recent Orrick Client Alerts that address an important U.S. appellate decision regarding the extraterritorial application of U.S. antitrust laws and the first U.S. appellate decision on how to calculate RAND royalties.
7th Circuit Decision in Motorola Mobility Holds That the FTAIA Bars a U.S. Parent’s Damages Claims Based on Its Overseas Affiliates’ Purchases of Price-fixed Products, But Does Not Bar Criminal Enforcement of the Sherman Act
The Foreign Trade Antitrust Improvements Act has provided ambiguous direction to courts and practitioners regarding the applicability of U.S. antitrust laws to conduct occurring wholly or partially in other countries. In Motorola Mobility LLC v. AU Optronics Corp. et al., (Motorola Mobility II), the 7th U.S. Circuit Court of Appeals became the latest appellate court to weigh in on the meaning of this opaque statute, holding that purchases by a U.S. parent company’s foreign affiliate of price-fixed goods that were incorporated into products subsequently shipped to the U.S. parent did not give rise to damages claims under Section 1 of the Sherman Act. Read more >>
Federal Circuit Provides Important Guidance in RAND Disputes
On Dec. 4, 2014, the Federal Circuit issued a much-anticipated opinion in Ericsson, Inc. v. D-Link Sys., Inc. The panel ruled on several issues, the most significant of which is the proper methodology for calculating “reasonable and non-discriminatory” (RAND) royalty rates for RAND-encumbered “standard essential patents.” The opinion the first guidance from an appellate court on how to calculate a RAND royalty. Read more >>
Global Developments
Asia
China’s Supreme Court Upholds High Court’s AML Ruling in Tencent Case
On Oct. 8, 2014, China’s Supreme Court made the final decision upholding the first instance ruling by Guangdong High People’s Court dismissing allegations by Qihoo against Tencent for allegedly abusing market dominance. Read more >>
SAIC Fines Tobacco Wholesaler 1.7 Million RMB for Differential Treatment Under China’s Anti-Monopoly Law
On Sept. 29, 2014, under the authorization of the China State Administration of Industry and Commerce, the Jiangsu Administration of Industry and Commerce imposed fines of 1.7 million RMB (US$276,000) on the Pizhou Branch of Xuzhou Tobacco Company for differential treatment under the Anti-Monopoly Law. Read more >>
Shaanxi High Court Upholds Intermediate Court Decision Dismissing Market Dominance Claims Against Xianyang Taxi Service Under China’s Anti-Monopoly Law
On Sept. 10, 2014, Shaanxi High People’s Court made a final decision upholding the first instance ruling by Xi’an Intermediate People’s Court dismissing claims by Xianyang Huaqin Taxi Service Co., Ltd. against several branches of the Xianyang Taxi Service. Read more >>
SAIC Fines Four Chongqing Quarry Operators for Market Division Under China’s Anti-Monopoly Law
On Oct. 31, 2014, China’s State Administration of Industry and Commerce published an August 2014 decision by the Chongqing Administration of Industry and Commerce regarding fines against four Chongqing quarry operators. Read more >>
Europe
EU Council Adopts Directive on Antitrust Damages Actions
On Nov. 10, 2014, the Council of the European Union formally adopted a Directive on antitrust damages actions. Read more >>
Court of Justice Emphasizes in Guardian Case That There Must Be No Discrimination When Fines Are Calculated
On Nov. 12, 2014, the Court of Justice of the European Union issued its judgment in Guardian v. European Commission. Read more >>
UK Competition Appeal Tribunal Extends Scope of BSkyB’s Wholesale Must-Offer Obligation in the Pay TV Sector
On Nov. 5, 2014, the Competition Appeal Tribunal, the UK’s specialist competition judicial body, varied the scope of an interim relief order to include an additional platform to which BSkyB―the holder of exclusive broadcasting rights to several premier sporting events in the UK―must offer to wholesale its core premium sports channels. Read more >>
General Court Confirms EC Decisions Ordering Inspections at Premises of Orange
In its judgment of Nov. 25, 2014, the General Court of the European Union rejected arguments put forward by Orange disputing the proportionality and necessity of decisions by the European Commission requiring Orange to undergo inspections. Read more >>
China and EU Reach Amicable Settlement on Trade Defense Investigation Into Chinese Telecoms
On Oct. 18 2014, at the 28th session of the China-EU Trade and Economic Joint Committee, intensive discussions led by Chinese Minister of Commerce Gao Hucheng and EU Trade Commissioner Karel De Gucht were concluded with an amicable settlement of the Commission’s trade defence investigation into Chinese telecoms. Read more >>
United States
FTC Settles Its First Action Against a Patent Assertion Entity
On Nov. 6, 2014, the U.S. Federal Trade Commission settled its first action against a patent assertion entity. Read more >>
FTC Reaches Consent Agreements with Blue Rhino and AmeriGas to Settle Charges of Restraining Competition
The two leading suppliers of pre-filled propane exchange tanks, commonly used in barbecue grills and outdoor heaters, have reached an agreement with the U.S. Federal Trade Commission to settle charges that the companies illegally agreed not to deviate from their plan to reduce the volume of propane sold to Walmart and other key customers. Read more >>
Price-Fixing MDL Against Online Travel Booking Companies Dismissed With Prejudice
On Oct. 27, 2014, the U.S. District Court for the Northern District of Texas dismissed with prejudice a complaint accusing a group of online travel booking companies of colluding to set hotel room rates. Read more >>
Court Approves Settlement of Narrowed Class Following Supreme Court’s Denial of Class Certification in Comcast v. Behrend
On Dec. 12, 2014, a District Court judge granted preliminary approval of the settlement submitted by the plaintiff class in Glaberson. v. Comcast Corp. Judge John R. Padova issued the order in the case, a decade-old class action in which the U.S. Supreme Court had reversed a 3rd U.S. Circuit Court of Appeals order affirming class certification in the closely followed case captioned Comcast Corp. v. Behrend. Read more >>
