In the Matter of Xerox Corp.
Federal Trade Commission
86 F.T.C. 364 (1975)
Xerox Corporation (Xerox) (defendant) sold and leased office copiers. In 1971, Xerox accounted for 86 percent of revenues in the office-copier market. The primary submarket of the office-copier market was the market for plain-paper office copiers. In 1971, Xerox accounted for 95 percent of revenues in the plain-paper submarket. There were 25 companies in the office copier market, but there were high barriers to entry and high barriers to effective competition. Xerox held a portfolio of office copier patents that it had compiled by, among other things, attempting to obtain all patents relevant to office copiers, attempting to recreate patents that were similar or equivalent to expired patents, entering into cross-license agreements with potential competitors, and licensing its patents contingent on licensees agreeing to limit their ability to manufacture and sell the more desirable products under the patent. The Federal Trade Commission brought an enforcement action against Xerox, alleging that its market share and conduct violated antitrust laws.
Rule of Law
Holding and Reasoning
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