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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- SPECTRUM SPORTS, INC., et al. v. McQUILLAN
- et vir, dba SORBOTURF ENTERPRISES
- certiorari to the united states court of appeals for
- the ninth circuit
- No. 91-10. Argued November 10, 1992-Decided January 25, 1993
-
- Shortly after the manufacturer of sorbothane-a patented elastic
- polymer with shock-absorbing characteristics-informed
- respondents, distributors of medical, athletic, and equestrian
- products made with sorbothane, that it would no longer sell them the
- polymer, petitioner Spectrum Sports, Inc., became the national
- distributor of sorbothane athletic products. Respondents' business
- failed, and they filed suit in the District Court against petitioners
- and others, seeking damages for alleged violations of, inter alia, 2 of
- the Sherman Act, which makes it an offense for any person to
- ``monopolize, or attempt to monopolize, or combine or conspire . . . to
- monopolize any part of the trade or commerce among the several
- States.'' A jury found that the defendants violated 2 by, in the
- words of the verdict sheet, ``monopolizing, attempting to monopolize,
- and/or conspiring to monopolize.'' The Court of Appeals affirmed,
- noting that, although the jury had not specified which of the three
- possible 2 violations had occurred, the verdict stood because the
- evidence established a case of attempted monopolization. Relying on
- its earlier rulings in Lessig v. Tidewater Oil Co., 327 F. 2d 459, and
- its progeny, the court held that the jury could have inferred two of
- the elements of that offense-a specific intent to achieve monopoly
- power and a dangerous probability of monopolization of a relevant
- market-from evidence showing the defendants' unfair or predatory
- conduct, without any proof of relevant market or the defendants'
- market power, and that the jury was properly instructed that it could
- make such inferences.
- Held: Petitioners may not be liable for attempted monopolization under
- 2 absent proof of a dangerous probability that they would
- monopolize a relevant market and specific intent to monopolize. The
- conduct of a single firm, governed by 2, is unlawful ``only when it
- threatens actual monopolization.'' Copperweld Corp. v. Independence
- Tube Corp., 467 U. S. 752, 767. Consistent with this approach,
- Courts of Appeals other than the court below have generally required
- a plaintiff in an attempted monopolization case to prove that (1) the
- defendant has engaged in predatory or anticompetitive conduct with
- (2) a specific intent to monopolize and (3) a dangerous probability of
- achieving monopoly power. Unfair or predatory conduct may be
- sufficient to prove the necessary intent to monopolize. However,
- intent alone is insufficient to establish the dangerous probability of
- success, Swift & Co. v. United States, 196 U. S. 375, 402, which
- requires inquiry into the relevant product and geographic market and
- the defendant's economic power in that market. There is little if any
- support in the statute or case law for Lessig's contrary interpretation
- of 2. Moreover, Lessig and its progeny are inconsistent with the
- Sherman Act's purpose of protecting the public from the failure of the
- market. The law directs itself only against conduct that unfairly
- tends to destroy competition, and, thus, courts have been careful to
- avoid constructions of 2 which might chill competition rather than
- foster it. The concern that 2 might be applied so as to further
- anticompetitive ends is plainly not met by inquiring only whether the
- defendant has engaged in ``unfair'' or ``predatory'' tactics. Since the
- jury's instructions and the Court of Appeals' affirmance both
- misconstrued 2, and since the jury's verdict did not negate the
- possibility that it rested on the attempt to monopolize ground alone,
- the case is remanded for further proceedings. Pp. 7-12.
- 907 F. 2d 154, reversed and remanded.
- White, J., delivered the opinion for a unanimous Court.
-