Supreme Court Strikes Down Ban on Minimum Resale Price Maintenance

Kelley Drye Client Advisory

In a 5-4 decision, the Supreme Court struck down the longstanding, strict prohibition on minimum resale price maintenance (“RPM”). The Court’s opinion – in Leegin Creative Leather Products, Inc. v. PSKS, Inc., __ S. Ct. __ (2007) – holds that minimum RPM, which had been prohibited outright under the per se rule, will now be subject to review under the antitrust laws’ more lenient rule of reason.

The below Client Advisory, prepared by Kelley Drye’s Antitrust Practice, analyzes the case and discusses what changes companies may now want to consider for their distribution policies.