Citation[]
ILC Peripherals Leasing Corp. v. IBM Corp., 448 F. Supp. 228 (N.D. Cal. 1978) (full-text).
Factual Background[]
Plaintiffs brought an antitrust action against IBM, alleging that IBM's practice of selling its Madrid disk drive unit and head/disk assembly for a single price constituted an illegal tying arrangement.
Trial Court Proceedings[]
After reviewing the history of disk drive technology, Judge Conti found (1) that the function of the aggregation of drive and assembly was "to provide users with a very large storage capacity that is permanently on line"; (2) that the integration of disk and assembly resulted in cost savings apart from merely reduced sales expenses and the like of any tie in; and (3) that the drive and assembly are normally sold and used as a unit even by plaintiffs. The court granted IBM a directed verdict.