Abstract

The patent laws passed by the U.S. Congress give a successful patent applicant, the individual right to use or not use his invention and to prevent others from using it for a period of seventeen years. Under its prohibition of tying contracts in the Clayton Act, Congress included patented products and also prohibited mergers, that tend to create monopolies. The businessman is thus faced with the delicate task of operating a legal monopoly without violating the antitrust laws. This article examines the conflict between the patent system and the antitrust laws and presents some guidelines for executive decision making. It concludes that it would appear that the patent monopoly will continue to be an important device used by American businessman to obtain and perpetuate control over product market. But while it is true that profit seeking patent monopolies have been supported by the courts, judicial rulings clearly show that patents can't be used as a disguise for market domination or other restraints.