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Berkey Photo, Inc. v. Eastman Kodak Co.

603 F.2d 263 (1979)

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Berkey Photo, Inc. v. Eastman Kodak Co.

United States Court of Appeals for the Second Circuit

603 F.2d 263 (1979)

Facts

Berkey Photo, Inc. (Berkey) (plaintiff) competed with Eastman Kodak Company (Kodak) (defendant) in the market for photofinishing services and the market for consumer cameras. For many years, Kodak maintained a dominant share of the market for consumer cameras and possessed a monopoly in the market for camera film. In 1972, Kodak simultaneously released the 110 camera and Kodacolor II film. The 110 camera was only compatible with Kodacolor II film, and Kodacolor II film could only be used with the 110 camera. The combination of the two products was enormously successful for Kodak, and Kodak’s competitors were unable to bring any competing products to the marketplace for many months after the release. Berkey attempted to sell a competing camera in 1973, but the camera suffered from design defects due to Berkey’s rush to compete with the 110 camera. Berkey eventually brought a lawsuit against Kodak, claiming that Kodak’s release of the 110 camera and Kodacolor II film was an impermissible use of Kodak’s monopoly power in the camera-film market to monopolize the consumer-camera market.

Rule of Law

Issue

Holding and Reasoning (Kaufman, J.)

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