Kodak Company Case Study

Hyun Lee Eastman Kodak v. Image Technical Services -- Plaintiff This is yet another berth that concerns the standard for summary judgment in an antitrust controversy. The lead story issue here is whether a defendants lack of trade power in the primary equipment merchandise precludes â€" as a matter of law â€" the possibility of market power in derivative aftermarkets. Eastman Kodak Company manufactures and sells photocopiers and micrographic equipment. Kodak also sells service and replacement separate for its equipment. Respondents be 18 independent service organizations (ISOs) that in the early(a) 1980s began servicing Kodak copying and micrographic equipment. Kodak subsequently adopted policies to trammel the availability of separate to ISOs and to make it more difficult for ISOs to make do with Kodak in servicing Kodak equipment. Respondents instituted this action in the United States govern lawcourt for the Northern District of California alleging that Kodaks policies were unlawful low both §§ 1 and 2 of the Sherman Act, 1 and 2. After sawed-off discovery, the District Court granted summary judgment for Kodak. The Court of Appeals for the Ninth Circuit reversed.

The appellate court found that respondents had presented suitable evidence to raise a genuine issue concerning Kodaks market power in the service and separate markets. It rejected Kodaks enmity that lack of market power in service and parts must be assumed when such power is take out in the equipment market. Kodak manufactures and sells complex business machines â€" as relevant here, heights volume photocopier and micrographics equipment. Kodak equipment is unique; micrographic software programs that operate on Kodak machines, for example, are not matched with competitors machines. Kodak parts are not compatible with other manufacturers equipment, and vice versa. Kodak equipment, although expensive when new, has little resale value. Kodak provides service and parts for its machines to its... If you want to get a full essay, order it on our website: Orderessay

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