EDVA Dismisses "Standards Conspiracy" Suit
Companies
and trade associations involved in setting industry standards should take note
of a recent decision out of the Eastern District of Virginia this month.
In
SD3, LLC v. Black & Decker, Inc. et al, a federal judge dismissed an
antitrust suit alleging a conspiracy in the power tool industry to prevent
adoption of table saw safety technology. The suit, brought by SD3, maker
of the SawStop technology which prevents table saw injuries, after unsuccessful
licensing negotiations with the defendant power tool companies, alleged a “group
boycott” on the part of the companies, claiming that the tool companies
conspired not to license the company’s technology. SD3 also claimed that
the companies attempted to prevent the technology from becoming an industry
standard.
The
tool companies filed motions to dismiss, and the judge recently dismissed the
suit, finding that SD3 had not alleged sufficient proof of a group boycott or
any harm to competition. First, the judge noted that many of the tool
companies had continued to negotiate with SD3 after the alleged boycott
began. In addition, the court found the “standards conspiracy”
allegations insufficient, noting that “neither mere participation in a
standards-setting body nor mere membership in a trade association is sufficient
to state an antitrust conspiracy claim” and that merely declining to impose the
technology on the market “did not exclude ‘SawStop’ technology from the market
in any way.”
The
court’s dismissal is relevant for companies
and associations considering industry or product safety standards.
Disclaimer:
Womble Carlyle represented a defendant in this case.
Labels: antitrust, conspiracy, Eastern District of Virginia, group boycott, lawsuit
