Advanced Ion Beam Technology Inc. v. Varian Semiconductor Equipment Associates Inc. - intersection of antitrust and patent law
On Aug. 31, Advanced Ion Beam Technology ("AIBT") had its antitrust counterclaims dismissed without prejudice from a patent infringement suit for failing to properly allege specific antitrust injury. On the same day, AIBT filed a new Sherman Act suit refining its antitrust allegations against Varian Semiconductor Equipment Associates Inc. ("Varian"), attempting to rectify the problems with its previous counterclaims.
Antitrust counterclaims are frequently raised by the defendant in patent infringement cases. A patent, by definition, is a monopoly providing the patentee with power to exclude others from making, using, selling, or offering to sell the patented invention. Such claims can be Walker Process fraud claims, alleging the asserted patent was procured by fraud in an effort to create or gain monopoly power in a market. Antitrust claims can also be "sham litigation" claims, alleging the patentee sought to create or maintain a monopoly by enforcing a patent knowing it to be invalid and by filing and maintaining an objectively baseless lawsuit.
Fortunately for the patentee, successfully asserting an antitrust counterclaim requires a high level of proof. Before initiating a patent infringement suit, it would be wise to review the asserted patents with an eye towards possible antitrust issues.
