DOJ Pushes Patent Disputes Out of Antitrust Arena in Disney, Samsung Cases

According to Bloomberg, the Trump administration has increasingly pushed to steer disagreements over so-called reasonable-and-nondiscriminatory (RAND) licensing terms away from antitrust law and toward traditional patent and contract frameworks. The US Justice Department reinforced that stance this month by weighing in on Samsung’s legal battle with Netlist Inc. and previously intervening in Disney’s case against InterDigital Inc..

Per a Bloomberg report, the Justice Department’s filings emphasize that disputes over royalty rates and licensing obligations tied to standard-essential patents (SEPs) should not automatically be treated as antitrust violations. Instead, officials argue such matters are better resolved through case-by-case legal analysis grounded in patent and contract law.

The issue highlights a long-standing tension in global technology markets: determining when aggressive licensing demands cross into anticompetitive behavior. Companies like Disney have framed certain practices as “hold-up,” while patent holders maintain they are simply negotiating fair compensation for their innovations.

SEPs play a critical role in modern technology. Manufacturers rely on these patents to build products that comply with widely adopted standards such as Wi-Fi, 4G, and 5G. As Bloomberg notes, disputes that once centered on wireless communications have now expanded into semiconductor technologies and video-compression systems that underpin streaming platforms.

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“This DOJ wants to keep contractual disputes over fair royalty rates away from the antitrust arena,” said Dylan Carson, a former Antitrust Division lawyer, in comments cited by Bloomberg.

Carson added that the department’s approach “maintains the status quo,” favoring individualized assessments over sweeping antitrust rules for SEP-related conflicts.

Related: Justice Department Clears Disney’s Controversial Acquisition of Fubo Amid Antitrust Concerns

The Justice Department has also cautioned courts against assuming that SEPs automatically confer market power. Per a Bloomberg account of recent filings and speeches, officials argue that such presumptions could distort antitrust analysis and discourage innovation.

Presuming market power because a patent has been incorporated into a standard “would be an incorrect application of the antitrust laws that creates an unwarranted assumption of market power,” Deputy Assistant Attorney General Dina Kallay said in prepared remarks, as reported by Bloomberg. “It may also unduly reduce the incentives for innovators to contribute cutting-edge technology to procompetitive industry standards.”

The underlying lawsuits illustrate the broader debate. Disney alleges that InterDigital misrepresented its willingness to license key video-compression patents under fair terms, later demanding high royalties and seeking injunctions abroad against Disney+ and Hulu. InterDigital has rejected those claims and asked the court to dismiss the case, arguing Disney is attempting to recast a standard licensing dispute as an antitrust issue, according to Bloomberg.

Meanwhile, Samsung contends that Netlist is using its memory-chip patents to maintain monopoly power, alleging inconsistent behavior with prior licensing commitments. Netlist disputes those assertions, maintaining that its patents are not standard-essential and that Samsung is improperly trying to block enforcement efforts through the US International Trade Commission, per a Bloomberg report.

Source: Bloomberg