Berkey Photo, Inc v. Eastman Kodak Company Eastman Kodak Company v. Berkey Photo, Inc

Decision Date19 February 1980
Docket NumberNo. 79-427,No.79-499,79-427,79-499
Citation444 U.S. 1093,62 L.Ed.2d 783,100 S.Ct. 1061
PartiesBERKEY PHOTO, INC. v. EASTMAN KODAK COMPANY. EASTMAN KODAK COMPANY v. BERKEY PHOTO, INC
CourtU.S. Supreme Court

On petitions for writs of certiorari to the United States Court of Appeals for the Second Circuit.

The petitions for writs of certiorari are denied.

Mr. Justice REHNQUIST, with whom Mr. Justice POWELL joins, dissenting.

An obviously carefully considered opinion of the Court of Appeals comprising 99 pages in a separate appendix to the petition for certiorari in this case, dealing as it does with the complexities, refinements, and contradictions embodied in the decisional law construing §§ 1 and 2 of the Sherman Act is obviously not an attractive candidate for review under our discretionary certiorari jurisdiction. Nonetheless, I do not think we may "let this cup pass from us" unless we are prepared to forgo the opportunity to review some propositions enunciated by the Court of Appeals in this case which strike me as little less than bizarre.

Mr. Justice BLACKMUN would grant certiorari and set the cases for oral argument.

One of the principal issues decided by the Court of Appeals was the obligation of respondent and cross-petitioner Kodak to "predisclose" information about its camera and film system to competing camera manufacturers prior to offering such camera and film for sale to the public. As to the camera market issues, the Court of Appeals held that Kodak had no such obligation, but as to the photofinishing and photofinishing equipment markets, the Court of Appeals held that Kodak violated § 2 of the Sherman Act by using its market power over films and cameras to obtain a competitive advantage with respect to photofinishing and photofinishing equipment. 603 F.2d 263, 279-285, 304. And as to the joint development project, the court held that Kodak violated § 1 of the Sherman Act by including in the agreement a nondisclosure provision, even though Kodak made an investment of millions of dollars in the project that presumably was essential to its success.

To one not schooled in the niceties of antitrust litigation, the notion that a statute designed to foster competition requires one competitor to disclose to another, in advance of marketing a product to the general public, its plan to introduce the new product, is difficult to fathom. And this Court has held as recently as United States v. Grinnell Corp., 384 U.S. 563, 86 S.Ct. 1698, 16 L.Ed.2d 778 (1966), that it is not a violation of § 2 of the Sherman Act for a business with monopoly power to achieve "growth or development as a consequence of a superior product, business acumen, or historic accident." 384 U.S., at 570-571, 86 S.Ct., at 1703-1704. I should think this reasoning is equally applicable to the alleged violation of § 1 of the Sherman Act which the Court of Appeals also dealt with in its opinion.

But the Court of Appeals in this case held that "the rule of Grinnell must be read together with the teaching of Griffith [United States v. Griffith, 334 U.S. 100, 107, 68 S.Ct. 941, 945, 92 L.Ed. 1236 (1948)], that the mere existence of monopoly power 'whether lawfully or unlawfully acquired,' is in itself violative of § 2, 'provided it is coupled with the purpose or intent to exercise that power,' " 603 F.2d, at 274, even though this Court in Grinnell did not express a similar limitation on its holding.

One can understand the exasperation revealed by the statement in the opinion...

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