Has NARM Stated a Section 1 Claim Related to Sonys Hyperlinks and Related Products and Services?
In this section, we address NARM’s claim that Sony’s inclusion of hyperlinks and related materials with its music CDs violates section 1 of the Sherman Act. Section 1 provides: “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” 15 U.S.C. 1. Accordingly, a “successful claim under Section 1 . . . requires proof of three elements: (1) a contract, combination, or conspiracy; (2) a resultant unreasonable restraint of trade in the relevant market; and (3) an accompanying injury.” Denny’s Marina, Inc. v. Renfro Productions, Inc., 8 F.3d 1217, 1220 (7th Cir. 1993).(4) Critically, the unreasonable restraint of trade must be a consequence of the concerted activity: “Section 1 of the Sherman Act condemns only those restraints of trade achieved by contracts, combinations, or conspiracies.” Rothery Storage & Van Co. v. Atlas Van Lines, Inc., 792 F.2d 210, 214
