InvaCare Corp. is a competitor of Respironics, Inc., a manufacturer of positive airway pressure devices (PAPs) and

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InvaCare Corp. is a competitor of Respironics, Inc., a manufacturer of positive airway pressure devices (“PAPs”) and masks used to treat obstructive sleep apnea (“OSA”). Respironics is one of three major competitors in the OSA field; there are other, smaller competitors as well. Invacare alleged that Respironics had entered into agreements with sleep labs under which Respironics would sell its products to the labs at predatorily low prices; in exchange, the labs allegedly would agree to prescribe only Respironics’ products. Although Invacare had no direct evidence of such exclusive agreements between Respironics and sleep labs, it pointed out that Respironics gave sleep labs almost 600,000 free masks over a four-year period, at a cost of $1.5 million. Respironics’ sales training materials stated that the purpose of distributing free masks to sleep labs was to encourage the labs to prescribe its masks and PAPs and to discourage customers from buying competitive products some sleep labs received free masks from several companies and Invacare itself provided free or below-cost masks to sleep labs. Should Invacare succeed on its motion for summary judgment?

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The law of marketing

ISBN: 978-1439079249

2nd Edition

Authors: Lynda J. Oswald

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