Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

On June 28, 2007, the Supreme Court issued its decision in Leegin Creative Leather Products, Inc. v. PSKS, Inc., No. 06-480, addressing antitrust analysis of resale price maintenance under Section 1 of the Sherman Act.

In a 5-4 opinion by Justice Kennedy, the Supreme Court concluded that such arrangements must be evaluated under a rule of reason standard.  Under a rule of reason standard, a plaintiff must demonstrate actual harm to competition from the challenged practice. The Supreme Court overturned the 96-year-old rule that resale price maintenance arrangements are illegal per se. Resale price maintenance agreements are those between suppliers and their distributors or retailers fixing a minimum resale price.