McKool Smith principal Nick Matich provided commentary to Intellectual Property Magazine's article, “Second Circuit Overturns FTC's 1-800 Contacts Antitrust Verdict.” The Second Circuit Judges’ ruling stated that a 2015 FTC verdict that 1-800 Contacts used trademark agreements with rivals to manipulate ads and inflate prices was biased “theoretical and anecdotal” evidence. This is a major win for the brand owner, and Nick explained, “The FTC’s case had a number of flaws. Most importantly, it rested on second-guessing settlements for claims that were indisputably brought in good faith, in a developing area of the law, and on the basis of disputed facts. Subjecting parties to antitrust scrutiny years after the fact for settling in the face of genuine legal uncertainty would have set a terrible precedent…. Fortunately, the Second Circuit rejected the FTC’s arguments and adhered to the traditional view that good faith arm’s length settlements are generally procompetitive.” Read the article here.
