Eastman Kodak Company v. Image Technical Services, Inc., et al. (504 U.S. 451)

U.S. Supreme Court · decided June 8, 1992 · Supreme Court Database (Spaeth)

Citation
504 U.S. 451 · 112 S. Ct. 2072
Decided
June 8, 1992
Term
October Term 1991
Vote
6–3
Majority author
Justice Blackmun
Issue area
Economic Activity
Disposition
Affirmed
Outcome
Petitioning party lost
Ideological direction
Liberal

Opinion excerpt

Justice Blackmun delivered the opinion of the Court. This is yet another case that concerns the standard for summary judgment in an antitrust controversy. The principal issue here is whether a defendant’s lack of market power in the primary equipment market precludes — as a matter of law — the possibility of market power in derivative aftermarkets. Petitioner Eastman Kodak Company manufactures and sells photocopiers and micrographic equipment. Kodak also sells service and replacement parts for its equipment. Respondents are 18 independent service organizations (ISO’s) that in the early 1980’s began servicing Kodak copying and micrographic equipment. Kodak subsequently adopted policies to limit the availability of parts to ISO’s and to make it more difficult for ISO’s to compete with Kodak in servicing Kodak equipment. Respondents instituted this action in the United States District Court for the Northern District of California, alleging that Kodak’s policies were unlawful under both § 1 and § 2 of the Sherman Act, 26 Stat. 209, as amended, 15 U. S. C. §§ 1 and 2 (1988 ed., Supp. II). After truncated discovery, the District Court granted summary judgment for Kodak. The Court of Appeals for the Ninth Circuit reversed. The appellate court found that respondents had presented sufficient evidence to raise a genuine issue concerning Kodak’s market power in the service and parts…

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