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What Lessors Need to Know About Antitrust : Competitors of Copier Equipment Provider Entitled to a 'Kodak Moment' in Alleging a Single Provider Relevant 'Aftermarket'

By Don T. Hibner, Jr.
May 28, 2008

The Ninth Circuit recently examined an antitrust issue with significant relevance to the equipment leasing industry. In Newcal v. IKON Office Solution, 513 F.3d 1038 (9th Cir., Jan. 23, 2008), competitors of a copier equipment provider, IKON Office Solution ('IKON'), alleged that defendant IKON used 'fraudulent practices' to secure and lengthen its customer contracts, thus reducing the ability of competing copier equipment providers to contest for 'aftermarket' business.'

Although the district court had granted a motion to dismiss pursuant to FRCP 12(b)(6) on the ground that IKON did not have market power over a 'unique' product or service, and that any control that it had acquired over its customers was a function of contract, and not market power, the Ninth Circuit reversed. The following article is an analysis of the relevant law of antitrust and a discussion of applicable issues that counsel should consider when marketing proprietary aftermarket equipment.

Antitrust Law

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