Eastman Kodak Co. v. Image Technical Services, Inc.

After respondent independent service organizations (ISO’s) began servicing copying and micrographic equipment manufactured by petitioner Eastman Kodak Co., Kodak adopted policies to limit the availability to ISO’s of replacement parts for its equipment and to make it more difficult for ISO’s to compete with it in servicing such equipment. Respondents then filed this action, alleging, inter alia, that Kodak had unlawfully tied the sale of service for its machines to the sale of parts, in violation of § 1 of the Sherman Act, and had unlawfully monopolized and attempted to monopolize the sale of service and parts for such machines, in violation of § 2 of that Act. The District Court granted summary judgment for Kodak, but the Court of Appeals reversed. Among other things, 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 markets, and rejected Kodak’s contention that lack of market power in service and parts must be assumed when such power is absent in the equipment market.