United States v. United States Gypsum Company
District Court, District of Columbia · 1954-07-06 · cited 10×
This case was an antitrust action brought by the United States against United States Gypsum Company and other gypsum product manufacturers, charging that they formed an unlawful combination through substantially uniform patent license agreements to fix prices and restrain trade in gypsum board in violation of the Sherman Act. After an initial dismissal, the Supreme Court reversed and remanded, leading to a summary judgment finding violations and entry of decrees; the Supreme Court later ruled the 1949 decree inadequate and directed further injunctive relief. On remand, the district court entered a final decree affirming that the defendants had acted in concert to fix prices and monopolize the industry, and enjoining them from enforcing price-fixing provisions in license agreements or engaging in other concerted actions to stabilize prices or sale terms in the eastern United States. The court's reasoning followed the Supreme Court's prior holdings that the licensing practices constituted violations of Sections 1 and 2 of the Sherman Act and that broader relief was required to address the restraints.