ILC Peripherals Leasing Corp. v. International Business MacHines Corp.

This matter is before the court on IBM’s motion for a directed verdict. F.R.Civ.P. 50(a). In Chisholm Brothers Farm Equipment Co. v. International Harvester Co., 498 F.2d 1137, 1140 (9th Cir.), cert. denied, 419 U.S. 1023 , 95 S.Ct. 500 , 42 L.Ed.2d 298 (1974), the Ninth Circuit said:

With this standard in mind, the court will review the evidence that Memorex has presented. First, however, it is necessary to briefly discuss the substantive law that controls this case.

Memorex has alleged that IBM’s Madrid disk drive is an illegal tying arrangement. A tying arrangement involves a seller’s refusal to sell one product (the tying product) unless the buyer also purchases another (the tied product). Northern Pacific Railway Co. v. United States, 356 U.S. 1, 5-6 , 78 S.Ct. 514 , 2 L.Ed.2d 545 (1958). Memorex claims that IBM’s practice of selling the Madrid drive unit (the tying product) and the Madrid head/disk assembly (the tied product) for a single price violates Section 1 of the Sherman Act, 15 U.S.C. § 1 , and Section 3 of the Clayton Act. 15 U.S.C. § 14 .

In Moore v. Jas. H. Matthews & Co., 550 F.2d 1207, 1212 (9th Cir. 1977), the Ninth Circuit said:

The court indicated that in…