Background
Imperial Chemical Industries (ICI) and Glaxo Group Ltd. (Glaxo) each owned patents covering various aspects of the antifungal drug griseofulvin. They “pooled” the patents (that is, cross-licensed one another), subject to express licensing restrictions that the chemical from which the “finished” form of the drug (tablets and capsules) was made must not be resold in bulk form. ICI and Glaxo licensed three “brand name” drug companies to make and sell the drug in finished form only. The purpose of this restriction was to keep the drug chemical out of the hands of small companies that might act as price-cutters, and the effect was to maintain stable, uniform prices.
The Department of Justice Antitrust Division sued, alleging violations of § 1 of the Sherman Act and also alleging that the patents were invalid. The district court granted summary judgment against the defendants on the antitrust charges, but dismissed the invalidity claims on the ground that the Government lacked standing to challenge patent validity. The district court also denied the Government’s request for mandatory selling of the bulk chemical and compulsory licensing, on reasonable terms. The Government then appealed to the Supreme Court.
Read more about this topic: United States V. Glaxo Group Ltd.
Famous quotes containing the word background:
“In the true sense one’s native land, with its background of tradition, early impressions, reminiscences and other things dear to one, is not enough to make sensitive human beings feel at home.”
—Emma Goldman (1869–1940)
“I had many problems in my conduct of the office being contrasted with President Kennedy’s conduct in the office, with my manner of dealing with things and his manner, with my accent and his accent, with my background and his background. He was a great public hero, and anything I did that someone didn’t approve of, they would always feel that President Kennedy wouldn’t have done that.”
—Lyndon Baines Johnson (1908–1973)
“... every experience in life enriches one’s background and should teach valuable lessons.”
—Mary Barnett Gilson (1877–?)