Case of Monopolies | |
Court: | Queen's Bench |
Date Decided: | Trinity Term, 1602 |
Full Name: | Edward Darcy, Esquire v Thomas Allin, London Haberdasher |
Citations: | EngR 398 11 Co Rep 84 77 ER 1260 Noy 173 Moore KB 671 1 Web Pat Cas 1 74 ER 1131 77 Eng Rep 1260 |
Judges: | John Popham CJ |
Keywords: | Letters patent |
Edward Darcy Esquire v Thomas Allin of London Haberdasher (1602) 74 ER 1131 (also spelt as "Allain" or "Allen" and "Allein" but most widely known as the Case of Monopolies), was an early landmark case in English law, establishing that the grant of exclusive rights to produce any article was improper (monopoly). The reasoning behind the outcome of the case, which was decided at a time before courts regularly issued written opinions, was reported by Sir Edward Coke.
The plaintiff, Edward Darcy, a Groom of the Chamber in the court of Queen Elizabeth, received from the Queen a license to import and sell all playing cards to be marketed in England. This arrangement was apparently secured in part by the Queen's concern that card-playing was becoming a problem among her subjects and that having one person control the trade would regulate the activity. When the defendant, Thomas Allin, a member of the Worshipful Company of Haberdashers, sought to make and sell his own playing cards, Darcy sued, bringing an action on the case for damages.[1]
The Queen's Bench court delivered judgment for the defendant, resolving that the Queen's grant of a monopoly was invalid, for several reasons:
Darcy v Allin was the first definitive statement by a court that state-established monopolies are inherently harmful and therefore contrary to law. The case has since come to be known as The Case of Monopolies, and the arguments set forth therein have served as the basis for modern antitrust and competition law. It drew considerably on historical evidence of rulers' antipathy to monopolies, as follows.