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Biggest Diaper Makers Settle Antitrust Suit

Litigation: Kimberly-Clark claimed that Procter & Gamble had sued to gain a monopoly.

May 04, 1992|From Associated Press

DALLAS — The nation's two biggest diaper makers have settled the latest in a series of court battles, an antitrust case that was set for trial today.

The companies and their attorneys declined to discuss details of the settlement that was reached Saturday.


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Kimberly-Clark Corp. had claimed that rival Procter & Gamble Co. brought patent infringement suits against it solely to gain a monopoly of the $4-billion disposable diaper market.

Dallas-based Kimberly-Clark wanted Procter & Gamble to repay the $20 million in expenses it incurred during the suits plus damages.

Procter & Gamble, based in Cincinnati, accounts for about 50% of the diaper market with its Pampers and Luvs brands. Kimberly-Clark's Huggies brand has about 27% of the market.

Procter & Gamble has accused Kimberly-Clark of violating patents for processes to make stretchy waistbands, absorbent materials and anti-leak features in diapers.

The disputes began in 1985 when Procter & Gamble accused Kimberly-Clark of violating a 1972 patent for a heating process used to make waistbands. A Dallas jury in July, 1987, ruled there was no infringement, a decision that was upheld in appeals court in October, 1988.

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