Antitrust II (Spring 2018) Judge Douglas H. Ginsburg Professor of Law Antonin Scalia Law School at George Mason University Office: 450 I E mail: dginsbur@gmu.edu Welcome to Antitrust II This course examines advanced topics in antitrust law. Specific topics include vertical restraints, criminal enforcement, innovation markets, exemptions and immunities, the territorial scope of U.S. antitrust law, and remedies. We will examine Supreme Court doctrine, influential modern lower court decisions, and government enforcement guidelines. Economic concepts and thinking characteristic of modern antitrust analysis are integrated throughout the course. No background in economics is necessary or assumed. Antitrust I is a prerequisite for this course. Class: We will meet Tuesday and Thursday from 10:00 am to 11:50 am. We will not meet on some regularly scheduled class dates. We will meet 21 times in all. Office Hours: I am available via appointment and email. Casebook: Andrew I. Gavil, William E. Kovacic, Jonathan B. Baker, and Joshua D. Wright, Antitrust Law in Perspective: Cases, Concepts and Problems in Competition Policy (2016) (3rd Edition). We will also read enforcement agency guidelines, scholarly commentary, and other supplementary materials that I will post on TWEN or are otherwise available on the web. Grading: The final exam will account for 100% of your grade, subject to a discretionary class participation adjustment of 1/3 rd of a grade in either direction. You should come to class having read and thought about the material, and ready to participate in a discussion. Final Exam: The final exam is scheduled for May 8 at 6:00 PM. There is no make up exam. Final Exam Permissible Materials: Open book; your own notes; no commercial publications. Tentative Syllabus: We may deviate from the tentative syllabus with assignments taken from current events or new cases, to accommodate guest speakers, or for scheduling reasons, etc. Please make sure you are signed up to receive updates via TWEN. 1
Vertical Restraints: READING ASSIGNMENTS Tues. Jan. 16 Sylvania a. Figures 6 1 and 6 2, Casebook pp. 898 99 b. Sylvania and notes, Casebook pp. 902 23 c. Douglas H. Ginsburg, Vertical Restraints: De Facto Legality Under the Rule of Reason, Supplement at 1 15 Thurs. Jan. 18 Leegin a. Leegin, Casebook pp. 923 52 b. Benjamin Klein, Competitive Resale Price Maintenance in the Absence of Free Riding Supplement at 16 66 c. Problem 6 1, Casebook pp. 1090 92 State Antitrust Law: Tues. Jan. 23 State Antitrust Law a. O Brien v. Leegin Creative Leather Prods., Inc. (Kan.), Supplement at 68 77 b. Partee v. San Diego Chargers (Cal.), Supplement at 78 80 c. Frank Easterbrook, Antitrust and the Economics of Federalism, Supplement at 81 108 d. Richard Posner, Federalism and the Enforcement of Antitrust Laws by State Attorneys General, Supplement at 109 119 Antitrust Exemptions: Thurs. Jan. 25 Federalism: a. Note on Antitrust Federalism, Casebook pp. 1303 06 b. Fed. Baseball Club v. Nat l League of Prof l Baseball Clubs, Supplement at 120 121 c. Radovich v. Nat l Football League, Supplement at 122 24 d. Brown v. Pro Football, Supplement at 125 30 e. Brady v. Nat l Football League, Supplement at 131 37 Tues. Jan. 30 State Action: a. Note on State Regulation, Casebook pp. 1306 10 b. Parker v. Brown, Supplement at 138 42 c. Cal. Retail Liquor Dealers Ass n v. Midcal Alum., Inc., Supplement at 143 152 d. Phoebe Putney, Casebook pp. 1310 19 Thurs. Feb. 1 State Action Cont d: a. North Carolina Dental, Casebook pp. 1319 32 b. Teladoc, Inc. v. Texas Medical Board, Supplement at 153 160 c. FTC Staff Guidance on Active Supervision of State Regulatory Boards Controlled by Market Participants (2015), Supplement at 161 69 d. Joseph M. Miller, Comments on Competition in Healthcare & Certificates of Need, 2
Supplement at 170 78 e. Dissenting Statement of Commissioner Brill, Supplement at 179 188 f. Heartland Institute, Rolling Back South Carolina s Certificate of Need Law, Supplement at 189 92 g. Wall Street Journal, For Hospital Chains, Competition is a Bitter Pill, Supplement at 193 196 h. Rebecca H. Allensworth, The New Antitrust Federalism, Supplement at 197 204 Tues. Feb. 6 First Amendment: a. Eastern R.R. Presidents Conf. v. Noerr Motor Freight, Inc., Supplement at 205 214 b. United Mine Workers of Am. v. Pennington, Supplement at 215 18 c. California Motor Transp. v. Trucking Unltd.., Supplement at 219 222 d. Prof l Real Estate Investors, Inc. v. Columbia Pictures Indus., Casebook pp. 1341 45 e. FTC Charges that Shire Viro Pharma Abused Government Processes Through Serial, Sham Petitioning, Supplement at 223 24 Territorial Limitations: Thurs. Feb. 8 Foreign Trade Antitrust Improvements Act (FTAIA) a. Foreign Trade Antitrust Improvements Act, 15 U.S.C. 6a, Supplement at 225 b. Hartford Fire, Casebook pp. 1262 70 c. Empagran, Casebook pp. 1271 82 d. Minn Chem, Inc. v. Agrium, Inc., Supplement at 226 242 e. Motorola Mobility LLC v. AU Optronics Corp., Supplement at 243 254 f. In re Capacitors Antitrust, Supplement at 255 262 Tues. Feb. 13 International Comity and Cooperation a. Note on Act of State doctrine, Sovereign Immunity, and Comity, Casebook 1282 88 b. Pallavi Guniganti, Courts Are Wrong Audience for Comity Arguments, Says Judge Wood, GLOBAL COMPETITION REVIEW, Supplement at 263 66 c. Davis Polk client letter re: Vitamin C Antitrust Litigation, Supplement at 267 74 d. In re Vitamin C Antitrust Litigation, 837 F.3d 175 (2d Cir. 2016), Supplement at 275 282 e. Edward Swaine, Cooperation, Comity, and Competition Policy: United States, Supplement at 283 89 f. Note on International Convergence, Casebook 1288 91 g. ABA Presidential Transition Report (International Section), Supplement at 290 95 h. Hollman & Kovacic, The International Competition Network: Its Past, Current and Future Role, Supplement at 296 303 Antitrust Remedies: Thurs. Feb. 15 Criminal Enforcement Program a. Scott Hammond, The Evolution of Criminal Antitrust Enforcement Over the Last Two Decades (speech from Feb. 25, 2010), Supplement at 304 320 b. John Taladay, Time for a Global One Stop Shop for Leniency Markers, Supplement at 321 27 3
c. Douglas H. Ginsburg and Joshua Wright, Antitrust Sanctions, Supplement at 328 364 d. GAO Report, Stakeholder Views on Impact of 2004 Antitrust Reform Are Mixed, but Support Whistleblower Protection (2011), Supplement at 365 380 e. Law360, Senate Oks Antitrust Whistleblower Bill, Sends It to House (Nov. 16, 2017), Supplement at 381 382 f. Christopher Thomas & Gianni De Stafano, Extradition & Antitrust: Cautionary Tales for Global Cartel Compliance, Supplement at 383 390 Fri. Feb. 16 George Mason Law Review Symposium: Attendance recommended for as much of the day as you are not in class. Tues. Feb. 20 No Class Thurs. Feb. 22 Criminal Sentencing a. DoJ Criminal Enforcement Trends Chart, Supplement at 391 92 b. Casebook pp. 1371 76 (Criminal sanctions; Hoffman LaRoche sentencing submission) c. United States v. VandeBrake, Supplement at 393 405 d. Plea Agreements with Antitrust Division Post VandeBrake, Law360, Supplement at 406 09 e. Albert Foer, Douglas H. Ginsburg, Robert Lande, and Joshua Wright, How DOJ Can Fix the Price Fixers, USA TODAY (May 29, 2015), Supplement at 410 11 f. Pallavi Guniganti, DoJ Alumni Assail Ginsburg, Wright, Foer and Lande Proposal, GLOBAL COMPETITION REVIEW, Supplement at 412 16 Tues. Feb. 27 Civil Remedies a. Casebook pp. 1376 1400 (Nat l Soc y Prof l Eng rs; Microsoft; note on treble damages) b. Excerpt of Complaint in United States v. Google, Inc., Supplement at 417 19 c. Press Release for Google ITA Consent Decree, Supplement at 420 21 d. Douglas H. Ginsburg & Joshua Wright, Antitrust Settlements: A Culture of Consent, Supplement at 422 434 e. Douglas Ginsburg & Joshua Wright, The Costs and Benefits of Antitrust Consents, Supplement at 435 446 Thurs. Mar. 1 No Class Tues. Mar. 6 Guest Speakers: Criminal Enforcement Thurs. Mar. 8 Section 5 of the FTC Act (Prof. Wright to Present) a. Casebook pp. 427 432 b. Section 5 Policy Statement, Supplement at 447 c. Statement of the FTC on the Issuance of the Section 5 Policy Statement, Supplement at 448 49 d. Dissenting Statement of Commissioner Ohlhausen regarding the FTC Section 5 Policy Statement, Supplement at 450 55 e. Joshua D. Wright and Angela M. Diveley, Unfair Methods of Competition After the 2015 Commission Statement, Supplement at 456 68 4
Tues. Mar. 13 Spring Break Thurs. Mar. 15 Spring Break Antitrust and Intellectual Property: Tues. Mar. 20 Background Principles and the Microsoft Lawsuit a. Casebook pp. 1095 1111 b. Jonathan Baker, Beyond Schumpeter vs. Arrow: How Antitrust Fosters Innovation, Supplement at 469 496 c. United States v. Microsoft, Casebook pp. 525 559; 1190 94 Thurs. Mar. 22 The Qualcomm Cases a. KFTC Summary of Complaint and Sanctions, Supplement at 497 514 b. Complaint, FTC v. Qualcomm Inc., Supplement at 515 46 c. Dissenting Statement of Commissioner Ohlhausen, In re Qualcomm, Inc., Supplement at 547 48 d. FTC v. Qualcomm Inc., Decision on Qualcomm s Motion to Dismiss, Supplement at 549 573 e. Koren Wong Ervin, Douglas H. Ginsburg, Anne Layne Farrar, Scott Robins, and Ariel Slonim, A Comparative and Economic Analysis of the U.S. FTC s Complaint and the Korea FTC s Decision against Qualcomm, Supplement at 574 583 Tues. Mar. 27 Patents and the SEP Holdup Problem: a. Overview of the Patent System Selected readings from CHISUM ON PATENTS, Supplement at 584 593 b. Casebook pp. 1148 59 c. Intellectual Property and Standard Setting, Note by U.S. to OECD, Supplement at 594 601 d. Broadcom Corp. v. Qualcomm Inc., Casebook pp. 1223 36 e. Rambus v. FTC, Supplement at 602 06 f. Statement of the FTC, In re Google (Motorola Mobility), Supplement at 607 611 g. DOJ PTO Joint Statement: Policy Statement on Remedies for Standards Essential Patents Subject to Voluntary F/RAND Commitments, Supplement at 612 621 h. European Court of Justice s Judgment in Huawei v. ZTE, Supplement at 622 24 i. Douglas Ginsburg, Taylor Owings, and Joshua Wright, Enjoining Injunctions: The Case Against Antitrust Liability for Standard Essential Patent Holders Who Seek Injunctions, Supplement at 625 631 Thurs. Mar. 29 Patent Assertion Entities a. Joshua Wright & Douglas Ginsburg, Patent Assertion Entities and Antitrust: A Competition Cure for a Litigation Disease?, Supplement at 632 657 b. FTC Patent Assertion Entity Activity Study, Supplement at 658 672 c. Joshua Wright & Douglas Ginsburg, The FTC PAE Study: A Cautionary Tale About Making Unsupported Policy Recommendations, Supplement at 673 686 d. Maurer & Haber, Patent Trolls or Patent Elves? Evidence from Publically Trade PAEs, 5
Supplement at 687 719 Tues. Apr. 3 Product Hopping a. New York ex rel. Schneiderman v. Actavis PLC, Supplement at 720 730 b. Mylan Pharma. Inc. v. Warner Chilcott PLC, Supplement at 731 38 c. Dennis Carlton & Yoad Shefi, A Critical Evaluation of the FTC s Theory of Product Hopping as a Way to Promote Competition, Supplement at 739 748 d. Douglas Ginsburg, Koren Wong Ervin, & Joshua Wright, Product Hopping and the Limits of Antitrust: The Danger of Micromanaging Innovation, Supplement at 749 753 e. Michael Carrier & Steve Shadowen, Product Hopping: A New Framework, Supplement at 754 762 Thurs. Apr. 5 Pay for Delay, a/k/a Out of Court Settlements a. Fed. Trade Comm n v. Actavis, Inc., Casebook pp. 1163 75 b. Agreements Filed with the FTC under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Nov. 2017, Supplement at 763 66 c. Damien Geradin, Douglas H. Ginsburg, and Graham Safty, Reverse Settlements in the European Union and the United States, Supplement at 767 804 d. Covington Client Alert, Lundbeck Loses Appeal Against Pay for Delay Decision, Supplement at 805 08 e. Bruce Kobayashi, Joshua Wright, Douglas H. Ginsburg, and Joanna Tsai, Actavis and Multiple ANDA Entrants: Beyond the Temporary Duopoly, Supplement at 809 817 Tues. Apr. 10 Guest Speakers Thurs. Apr. 12 ABA Section on Antitrust Law, Spring Meeting: Attendance strongly recommended Tues. Apr. 17 Guest Speakers: Careers in Antitrust Thurs. Apr. 19 No Class Tues. Apr. 24 No Class Thurs. Apr. 26 No Class FINAL EXAM: May 8, 2018 at 6:00 P.M. 6