Brief for the United States (1914)

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PART iir. 27 (Iciiicd l)y the State in the one case and rci^iilatcd in the otiici-, the State aetini;* in each ease tor the i^ood of tlie ])nhlie. In j)assini; the so-ealled antitrust statutes ^'ongress and a State legislative body aet under different soiirees of power, but in each case the exercise of the power arri\'es at the same result, namely, l)rohibition of restraints of trade and of monopolies. The effect of the State act and of tlie Sherman Act is the same; tliat is, the two acts relate to and operate upon tlie same subject matter, although one is enacted under the police power of the State and the other under the authority of Congress to regulate interstate commerce. If the exercise of the police power of the State does not encroach upon the domain of the patent laws, how can it be said that to include within the operation of the Sherman Act combinations restraining trade is to subtract from the monopoh^ of the patentee ? Suppression of competition is merely one form of illegal restraint. If patents may not be used to accomplish a suppression of competition, it is equally clear that patents may not be used to accomplish other unlawful restraints. In other words, a decision that competition can not be suppressed through the use of patent licenses is a decision to the effect that patents may not be used to accomplish other means of restraint, for suppression of comi^etition is only one fonn of illegal restraint.