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Antitrust Keyed to Gavil, 5th Ed.
United States v. Singer Manufacturing Co.
Citation:
374 U.S. 174, 83 S.Ct. 1773, 10 L.Ed.2d 823 (1963)Facts
Singer Manufacturing Company was the sole U.S. manufacturer of household zigzag sewing machines, with approximately 61.4% of domestic sales in multicam zigzag machines in 1959. During this period, Japanese imports accounted for 22.6% of the market, while European imports represented 16%. Singer had developed its own multicam zigzag mechanism but discovered that both Vigorelli (an Italian corporation) and Gegauf (a Swiss corporation) had competing patent claims. Singer first entered into a cross-licensing agreement with Vigorelli in 1955, then with Gegauf in 1956. In both agreements, the parties agreed not to challenge each other’s patent claims and to help each other secure broad patent coverage. Following these agreements, Singer acquired Gegauf’s U.S. patent application for $90,000 and subsequently used the patent to file infringement suits against Japanese manufacturers and importers. Singer also initiated proceedings before the U.S. Tariff Commission seeking to exclude all imported machines that infringed on the Gegauf patent. Throughout these negotiations and actions, the parties repeatedly expressed their common concern about Japanese competition in the U.S. market.
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