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

504 U.S. 451 (1992)

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

United States Supreme Court
504 U.S. 451 (1992)

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Facts

Eastman Kodak Company (Kodak) (defendant) sold photocopiers and micrographic equipment. Kodak also sold parts and service for its equipment. Kodak manufactured some parts internally and ordered others from independent original-equipment manufacturers (OEMs). Kodak’s equipment required Kodak-specific parts. In the 1980s, independent service organizations (ISOs) began servicing Kodak equipment at lower prices than Kodak. They also sold parts. In response, Kodak adopted a policy of selling parts only to buyers of Kodak equipment that exclusively used Kodak for service and repairs. Kodak also agreed with the OEMs that they would sell Kodak parts only to Kodak. Many ISOs went out of business or lost significant revenue. Image Technical Services, Inc., and 17 other ISOs (plaintiffs) sued Kodak for violating the Sherman Act by (1) tying the sale of service to the sale of parts and (2) monopolizing the sale of service for Kodak equipment. The district court granted summary judgment in Kodak’s favor, but the court of appeals reversed. The United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Blackmun, J.)

Dissent (Scalia, J.)

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