N-Data Signals Important New Enforcement Trend

Law360, New York (January 30, 2008, 12:00 AM EST) -- On Jan. 23, 2008, the Federal Trade Commission announced a stipulated settlement with Negotiated Data Solutions LLC (N-Data) curtailing N-Data's efforts to license its patents relating to Ethernet, an almost universally used computer networking standard, on terms different than those that had been promised before the standard was adopted.

The Commission, by a 3-to-2 majority, found that N-Data's efforts to obtain more favorable terms constituted an “unfair method of competition” and an “unfair or deceptive act or practice” in violation of Section 5 of the Federal...
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