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Competition record

Eastman Kodak

Deep profile · 1 linked library matter

Eastman Kodak sold copiers and controlled the parts and service that kept those machines running. In 1992 the Supreme Court let independent servicers' aftermarket claim go forward, and the library records the matter on the plaintiffs' side of that ruling.

Overview

Eastman Kodak built a consumer franchise on film and cameras and also sold copiers and other business equipment. A copier owner needs parts and someone to install them. Kodak sold that service. Independent service organizations wanted to repair Kodak machines too, and they needed Kodak parts to do it.

The independents said Kodak had tied parts to Kodak service and had refused to sell parts to shops that competed with Kodak's own technicians. Equipment buyers might have had choices when they first picked a copier. Once the machine was installed, parts and service were a separate market they could not easily leave. That is the aftermarket lock-in theory. A lower court had granted summary judgment for Kodak. In 1992 the Supreme Court reversed and let the claim proceed.

The library status is won by the plaintiff, meaning the Supreme Court ruling that allowed the aftermarket claim to go forward. The case continued after that ruling. This profile does not state who won a later trial. Kodak's film business later shrank. The 1992 case is about copier parts and service.

Competition footprint

The equipment sale and the later repair are different purchases, and the case is about the second one.

Refusing parts to independent servicers is the conduct the plaintiffs were allowed to test.

The library stands on the plaintiffs' side of the 1992 Supreme Court decision, not of an unstated final judgment.

Consumer & business angle

Copier owners pay for service and have little choice of parts once the machine is in place.

Independent repair shops were the plaintiffs who needed those parts to stay in business.

What to watch

  • How aftermarket tying claims are pleaded when the original equipment market looks competitive.
  • The limit of this library entry: the 1992 ruling let the claim proceed, and the later trial result is not stated here.

Markets

copiers · copier parts and service · photographic film · copier equipment · aftermarket service and parts

Also known as: kodak, eastman kodak

Conduct themes

tyingrefusal to dealabuse of dominance