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About: SmithKline Corp. v. Eli Lilly & Co.     Goto   Sponge   NotDistinct   Permalink

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SmithKline Corp. v. Eli Lilly and Co., 575 F.2d 1056 (3d Cir. 1978), is a 1978 decision of the United States Court of Appeals for the Third Circuit that first considered the price-discounting practice now termed bundling. Bundling is the setting of the total price of a purchase of several products or services from one seller at a lower level than the sum of the prices of the products or services purchased separately from several sellers. Typically, one of the bundled items (the "primary product") is available only from the seller engaging in the bundling, while the other item or items (the "secondary product") can be obtained from several sellers. The effect of the practice is to divert purchasers who need the primary product to the bundling seller and away from other sellers of only the s