In the Matter of Xerox Corp.

Xerox Corporation (defendant) dominated the office-copier market, holding 86 percent of revenues overall and 95 percent of the plain-paper copier submarket, in an industry with 25 competitors but high barriers to entry. Xerox built its patent portfolio by trying to acquire every relevant patent, recreating patents equivalent to ones that had expired, cross-licensing with potential rivals, and conditioning licenses on licensees agreeing not to manufacture or sell the most desirable patented products. The FTC brought an enforcement action alleging Xerox's market position and conduct violated the antitrust laws.