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| Abbott Laboratories v. Baxter, Inc. |
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Abbott Laboratories
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| The Seventh Circuit Court of Appeals upheld client Abbott Laboratories’ position that a co-terminus, non-compete provision in a patent licensing agreement did not violate Section 1 of the Sherman Act. Applying the doctrine of ancillarity, the Appeals Court agreed with Abbott’s view that the non-compete running toward the licensor, Baxter, was reasonable in scope and related to the underlying patent license agreement. As a result, the Seventh Circuit upheld Abbott’s contention that Baxter could not compete with Abbott’s branded inhalant anesthetic drug, Ultane®. Upon the expiry of the non-compete, Baxter then attempted to suggest to potential customers that they could use their current Abbott-owned vaporizers to administer Baxter’s generic product. Abbott brought suit for injunctive relief on unfair competition and other grounds.
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