ALLIED ORTHOPEDIC APPLIANCES INC., on behalf of itself and all others similarly situated; BROOKS MEMORIAL HOSPITAL INC.; DEBORAH HEART AND LUNG CENTER; NORTH BAY GENERAL HOSPITAL INC.; SOUTH JERSEY HOSPITAL INC., Plaintiffs-Appellants, v. TYCO HEALTH CARE GROUP LP, a Delaware partnership; MALLINCKRODT INCORPORATED, a Delaware corporation, Defendants-Appellees. ALLIED ORTHOPEDIC APPLIANCES INC., on behalf of itself and all others similarly situated, Plaintiff, and NATCHITOCHES PARISH HOSPITAL SERVICE DISTRICT, Plaintiff-Appellant, v. TYCO HEALTH CARE GROUP LP, a Delaware partnership; MALLINCKRODT INCORPORATED, a Delaware corporation, Defendants-Appellees., 592 F.3d 991

Summary

Plaintiffs alleged that they overpaid for the pulse oximetry sensors because defendant used two kinds of marketing agreements to foreclose competition from generic sensor manufacturers. Plaintiffs also alleged that by introducing a patented pulse oximetry system that was incompatible with generic sensors, defendant unlawfully maintained its monopoly over the sensor market. The instant court found that plaintiffs did not present evidence that defendant's market-share and sole-source contracts foreclosed competition in a substantial share of the market for pulse oximetry sensors. Vendors of generic sensors remained able to compete for defendant's customers by offering their products at better prices. The agreements therefore did not constitute unreasonable restraints on trade under § 1. Next, the instant court found that plaintiffs presented no evidence to refute that the patented sensor design facilitated the introduction of new types of sensors with added capabilities at less cost to ...