FTC Sues N-Data for Violating Standards Commitment to IEEE

The Federal Trade Commission (FTC) announced that it has simultaneously filed suit against Negotiated Data Solutions LLC (N-Data) and settled the case by entering into a consent order with N-Data. The FTC charged N-Data with violating section 5 of the FTC Act by violating a commitment to the IEEE to license NWay Ethernet patents on royalty terms agreed upon with the IEEE, which caused higher prices due to higher royalties to be passed on to consumers of electronic products. Section 5 of the FTC Act prohibits unfair methods of competition and unfair commercial acts and practices.