Eastman Kodak Co. v. Picture Tech Services, Inc., 504 U.S. 451 (1992)

Immediately following respondent independent provider groups (ISO’s) first started maintenance duplicating and you will micrographic products created by petitioner Eastman Kodak Co., Kodak observed principles to limit the availability so you can ISO’s away from replacement for pieces for its equipment also to succeed harder having ISO’s so you can take on it inside servicing including devices. Respondents following submitted this task, alleging, inter alia, one to Kodak got unlawfully fastened the fresh business out of provider because of its computers toward sale regarding pieces, during the violation away from § one of the Sherman Act, and had unlawfully monopolized and you will attempted to monopolize the latest product sales from services and parts getting instance machines, into the ticket off § 2 of the Work. The new Area Judge granted summation judgment to possess Kodak, although Court from Appeals stopped. Among other things, brand new appellate legal discovered that respondents had presented sufficient facts to boost a real topic towards Kodak’s markets electricity on the service and you can parts avenues, and you will refused Kodak’s contention one to not enough market power in service and you will bits need to be thought when such as for example strength try missing in the the equipment markets.

1. Kodak has never came across the needs of Federal Rule out-of Civil Processes 56(c) having an award from realization judgment into § step one claim. Pp. 461-479.

Kodak’s idea will not correctly explain genuine industry decisions, because there is no evidence or denial that their equipment conversion process dropped after it increased its service rates

(a) A tying arrangement-we. e., a binding agreement by a party to sell you to unit toward reputation your client also instructions a unique (or tied) unit, or perhaps believes that he doesn’t buy one to product out-of all other provider-violates § 1 as long as owner provides appreciable economic strength regarding the attaching equipment business. Pp.461-462.

(b) Respondents has actually shown enough proof an excellent attaching arrangement so you can defeat a summary wisdom action. A fair trier of-fact may find, first, you to definitely service and you will parts are two collection of items in light from facts demonstrating that each and every might have been, and you will continues on in a number of circumstances is, ended up selling alone, and, 2nd, one Kodak keeps fastened the deals of these two products in white off facts showing so it do offer parts to help you third parties on condition that it concurred not to ever buy provider off ISO’s. Pp. 462-463.

(c) For purposes of deciding appreciable financial strength on tying market, this Court’s precedents features discussed field power as the power to force a buyer to act that he would not do inside an aggressive sector, and get typically inferred the current presence of eg electricity about seller’s hands off a main market share. P.464.

(d) Participants was entitled lower than such precedents so you’re able to a go to the its point out that Kodak have sufficient strength on the pieces industry to make undesired commands of your fastened solution field, considering research indicating one Kodak features command over brand new access out-of parts and that like manage possess omitted solution race, enhanced solution prices, and you can pushed reluctant consumption of Kodak solution. Pp. 464-465.

It is plausible so you can infer away from respondents’ facts one to Kodak chosen to increase immediate winnings because of the applying industry fuel where locked-during the people, high suggestions costs, and you can discriminatory jaumo mobiel cost limited, and possibly eliminated, one long-identity losings

(e) Kodak has not fulfilled the reasonable weight of exhibiting that, even after for example facts, an inference of field power try unreasonable. Kodak’s theory one the absence of ent sector precludes-given that a question of rules-the possibility of business stamina throughout the by-product aftermarkets sleeps towards brand new truthful assumption whenever it increased its bits otherwise service cost over aggressive levels, prospective customers carry out only prevent to shop for their equipment. Participants bring a powerful reason for which discrepancy: the current presence of significant recommendations and you can changing will cost you which will carry out a faster responsive partnership anywhere between afterent sales. Pp.465-478.