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

Opinion by Judge BEEZER; Partial Concurrence and Partial Dissent by Judge GILLMOR.

Plaintiffs-Appellees Image Technical Services, and ten other independent service organizations (“ISOs”) that service Kodak photocopiers and micrographie equipment sued the Eastman Kodak Co. (“Kodak”) for violations of the Sherman Act. The ISOs alleged that Kodak used its monopoly in the market for Kodak photocopier and micrographie parts to create a second monopoly in the equipment service markets. A jury verdict awarded treble damages totaling $71.8 million. The district court denied Kodak’s post trial motions and entered a ten year permanent injunction requiring Kodak to sell “all parts” to ISOs. Kodak filed a timely appeal, challenging the jury’s verdict, the ISOs’ evidence, the jury instructions, the damage awards and the permanent injunction. Kodak also seeks reversal on the basis of an alleged biased juror.

This appeal raises questions relating to the application of antitrust principles upon a finding that a monopolist unilaterally refused to deal with competitors. We also address overlapping patent and copyright issues and their significance in the antitrust context.

We have jurisdiction…

concurring in part and dissenting in part:

I join in the majority opinion affirming in part, reversing in part and remanding for further proceedings, with the exception of two modifications to the permanent injunction of the district court. Both modifications concern the applicability of the injunction to Kodak’s successors. The first is the deletion of the provision in paragraph 1(a) of the injunction specifying that the injunction applies to “Kodak’s successors and assigns.” The second modification with which I do not agree is the addition to paragraph 7 of the injunction of the following provision: “If Kodak completely exits the service market for either (1) high volume copiers or (2) micro-graphic equipment, the terms of this injunction shall no longer apply to Kodak parts for that equipment.” I believe that these modifications are unnecessary and significantly reduce the effectiveness of the injunction.

I

The appellate court reviews a district court’s decision to grant permanent injunctive relief and the scope of that relief for an abuse of discretion or application of erroneous legal principles. Viceroy Gold Corp. v. Aubry, 75 F.3d 482, 488 (9th Cir.1996); Dexter v.…