Data General Corp. v. Grumman Systems Support Corp.

36 F.3d 1147, 32 U.S.P.Q.2d 1385 (1994)

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Data General Corp. v. Grumman Systems Support Corp.

United States Court of Appeals for the First Circuit
36 F.3d 1147, 32 U.S.P.Q.2d 1385 (1994)

Facts

Data General Corp. (DG) (plaintiff) manufactured computer systems, including MV computers, DG’s most technologically sophisticated line. DG also provided services for the maintenance and repair of its own computer equipment—a field in which it competed with other companies. Initially, DG allowed or even encouraged competing companies to make use of DG diagnostic protocols. But eventually, DG began to restrict the use of its materials by competitors—especially DG’s Advanced Diagnostic Executive System (ADEX), a copyrighted software for diagnosing problems with MV computers. However, Grumman Systems Support Corp. (Grumman) (defendant), a provider of repair services for DG computers, continued making unauthorized use of ADEX. DG brought suit against Grumman in federal district court, alleging both copyright infringement and appropriation of trade secrets. Grumman countered by accusing DG of willfully maintaining a monopoly over aftermarket services for DG computers in violation of § 2 of the Sherman Act. DG moved for summary judgment with respect to the antitrust issue. The district court granted the motion. Grumman appealed to the United States Court of Appeals for the First Circuit.

Rule of Law

Issue

Holding and Reasoning (Stahl, J.)

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