Antitrust laws are designed to prevent attempts by companies to create a monopoly and otherwise limit competition.  Parties engaging in that type of activity often violate various state and federal laws including California’s Cartright Act (Business & Professions Code §16720 et. seq.), the Federal Sherman Act § 1 (15 U.S.C. § 1) and the Clayton Act § 3 (15 U.S.C. § 14).

One type of anti-trust violation is known as an illegal tie-in or tying agreement.  ”A tying arrangement is a device used by a seller with market power in one product market to extend its market power to a distinct product market.” [Paladin Assocs., Inc. v. Mont. Power Co., 328 F.3d 1145, 1159 (9th Cir. 2003)]

The essential characteristic of an unlawful tying arrangement is the seller’s exploitation of its dominance in the tying market to force the purchase of the tied product. [Sherman Anti-Trust Act, § 1, as amended, 15 U.S.C.A. § 1.]

When a consumer is forced to purchase the tied product when the consumer would not do so in a competitive market, a tying arrangement is unlawful. [Jefferson Parish Hosp. Dist. No. 2 v. Hyde, 466 U.S. 2, 13-14].

In essence, a seller may not use its market power in one market “to impair competition on the merits in another market.” The consumer is injured when her freedom to select the best bargain is impaired by her need to purchase the tying product.  She may also be injured when she is unable to evaluate the true cost of either product when they are only available as a package.

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Robert G. Klein, Esq. is a Los Angeles trademark attorney, business litigation attorney lawyer and a Los Angeles business lawyer who specializes in trademark infringement, copyright infringement, business torts, breach of contract actions and unfair competition. He feels it is important to hire a Los Angeles trademark lawyer and a Los Angeles business lawyer if one is involved in litigation in that locale. Robert G. Klein is a prominent Los Angeles business attorney and is available for consultation on matters involving trademark infringement, copyright infringement, breach of contract cases, business torts, fraud, and business law matters. He has successfully obtained many multi-million dollar jury verdicts. Many of Mr. Klein’s court decisions have been published as case authority and he has appeared before the United States Supreme Court for oral argument. Mr. Klein has also published “Consumer List: Trade Secret or Fair Game?”, which is an article published in the Los Angeles Lawyer Magazine. Los Angeles trademark infringement attorney Robert G. Klein can be reached at (213) 996-8508 or visit our web site at http://www.kleinlitigation.com

His emphasis is on trademark infringement, unfair competition and trade secret litigation. Los Angeles trademark infringement lawyer Robert G. Klein has acted as lead counsel in approximately 60 trials.