International Business Machines Corp. v. United States, 298 U.S. 131 (1936)
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International Business Machines Corp. v. United States, 298 U.S. 131 (1936)
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International Business Machines Corp. v. United States No. 758 Argued April 8, 1936 Decided April 27, 1936 298 U.S. 131
APPEAL FROM THE DISTRICT COURT OF THE UNITED STATES
FOR THE SOUTHERN DISTRICT OF NEW YORK
Syllabus
Section 3 of the Clayton Act declares it unlawful for any person engaged in commerce to lease machinery "whether patented or unpatented" on the condition that the lessee shall not use supplies or other commodities of the lessor’s competitor, where the effect of the condition "may be" to lessen competition substantially or tend to create a monopoly.
Held:
1. The prohibition is violated by a condition requiring a lessee to operate the leased machine only with supplies from the lessor, since this, in effect, precludes the use of supplies of a competitor. P. 134.
2. While the section does not purport to curtail the patent monopoly of the lessor, the prohibition of tying clauses is not limited to unpatented supplies but includes also supplies which have been patented to the lessor either separately or in combination with the patented machine. P. 136.
3. Assuming that, by implied exception, a tying clause would not violate the provision, though it tended to create a monopoly, if its purpose and effect were to protect the goodwill of the lessor in the leased machines, there is no basis for the exception where the substantial benefit of the clause to the lessor is in the elimination of competition and where it does not appear that protection of his goodwill cannot be achieved by method that do not tend to monopoly and are not otherwise unlawful. P. 138.
13 F.Supp. 11 affirmed.
Appeal from a decree enjoining, as contrary to the Clayton Act, certain clauses which the appellant had been placing in its leases of tabulating machines, requiring the use of tabulating cards of its own manufacture.
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Chicago: U.S. Supreme Court, "Syllabus," International Business Machines Corp. v. United States, 298 U.S. 131 (1936) in 298 U.S. 131 298 U.S. 132. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=QP4V7CGHHXK3H9C.
MLA: U.S. Supreme Court. "Syllabus." International Business Machines Corp. v. United States, 298 U.S. 131 (1936), in 298 U.S. 131, page 298 U.S. 132. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=QP4V7CGHHXK3H9C.
Harvard: U.S. Supreme Court, 'Syllabus' in International Business Machines Corp. v. United States, 298 U.S. 131 (1936). cited in 1936, 298 U.S. 131, pp.298 U.S. 132. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=QP4V7CGHHXK3H9C.
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