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In the Matter of Xerox Corp.

Federal Trade Commission
1975 FTC LEXIS 115, 86 F.T.C. 364 (1975)
ELI5:

Sections

Rule of Law:

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The Legal Principle

This section distills the key legal rule established or applied by the court—the one-liner you'll want to remember for exams.

Facts:

  • In 1971, Xerox Corporation accounted for approximately 95% of revenues in the plain paper office copier submarket, giving it monopoly power.
  • Xerox maintained a 'lease only' policy for its copiers, discouraging sales, and utilized package leasing and quantity discount plans that were discriminatory.
  • The company developed a vast and complex patent structure that acted as a barrier to competition and used its patent position to gain access to technology from potential competitors through cross-licensing arrangements.
  • Xerox's patent licenses contained restrictive provisions, such as limiting licensees to manufacturing only coated paper copiers or low-speed plain paper copiers.
  • Xerox had an agreement with Battelle Memorial Institute requiring Battelle to convey to Xerox all patents and know-how it developed related to xerography.
  • Xerox entered into agreements with Rank Xerox and Fuji Xerox that effectively divided the global market for plain paper copiers, foreclosing competition between them in different territories.
  • In 1969, Xerox acquired a 51% controlling interest in Rank Xerox, which the FTC identified as a potential competitor in the U.S. market.

Procedural Posture:

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How It Got Here

Understand the case's journey through the courts—who sued whom, what happened at trial, and why it ended up on appeal.

Issue:

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Legal Question at Stake

This section breaks down the central legal question the court had to answer, written in plain language so you can quickly grasp what's being decided.

Opinions:

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Majority, Concurrences & Dissents

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Analysis:

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Why This Case Matters

Get the bigger picture—how this case fits into the legal landscape, its lasting impact, and the key takeaways for your class discussion.

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