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Antitrust Keyed to Morgan, 7th Ed.
United States v. Loew’s, Inc.
Citation:
371 U.S. 38, 83 S. Ct. 97, 9 L. Ed. 2d 11 (1962)Facts
In 1957, the United States brought separate civil antitrust actions against six major distributors of pre-1948 copyrighted motion picture feature films for television exhibition. The government alleged that each defendant had engaged in block booking in violation of §1 of the Sherman Act by conditioning the license or sale of one or more feature films upon the acceptance of additional unwanted or inferior films. No combination or conspiracy among the distributors was alleged; rather, the claim of illegality rested solely on each defendant’s individual marketing practices. After a consolidated trial, the district judge found that 25 of the 68 licensing agreements examined constituted illegal block booking. For example, Loew’s required KWTV of Oklahoma City to license its entire library of 723 films for $314,725.20, refusing to allow selection among the films. Associated Artists forced WTOP of Washington to take inferior films like “Nancy Drew Troubleshooter” and “Gorilla Man” to get desirable classics like “Casablanca” and “Treasure of the Sierra Madre.” The district court entered injunctions against each defendant, prohibiting them from conditioning the sale of any feature film upon the purchase of another film.
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