Surgical Instrument Service Company, Inc. v. Intuitive Surgical, Inc.

Court of Appeals for the Ninth Circuit·Decided August 13, 2026·No. 25-1372·Published

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

SURGICAL INSTRUMENT No. 25-1372 SERVICE COMPANY, INC., D.C. No. 3:21-cv-03496-

Plaintiff-ctr-defendant -

AMO

Appellant,

v.

OPINION

INTUITIVE SURGICAL, INC.,

Defendant-ctr-claimant - Appellee.

Appeal from the United States District Court for the Northern District of California Araceli Martinez-Olguin, District Judge, Presiding

Argued and Submitted June 25, 2026 San Francisco, California

Filed August 13, 2026

Before: Mary H. Murguia, Chief Judge, and Lucy H. Koh and Holly A. Thomas, Circuit Judges.

Opinion by Judge Koh

2 SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC.

SUMMARY *

Antitrust

The panel held that the district court erred in requiring Plaintiff Surgical Instrument Service Co., Inc. (“SIS”) to prove certain factors known as the “Kodak/Epic factors” in order to prove its antitrust claims against Defendant Intuitive Surgical, Inc. (“Intuitive”). At trial, SIS introduced evidence that Intuitive possesses more than 99% market share in the market for surgical robots used in minimally invasive soft- tissue (“MIST”) surgery—the “foremarket”—and 100% market share in the robot attachment instruments used in such surgeries—the “aftermarket.” The district court decided to instruct the jury that, in order to establish that SIS’s proposed aftermarket is a valid antitrust market, SIS needed to prove the Kodak/Epic factors.

The panel held that the district court’s jury instruction was erroneous. The panel explained that the Kodak/Epic factors apply only in cases where the plaintiff cannot show that the defendant possesses market power in the competitive foremarket and instead seeks to bring a “Kodak-style” antitrust claim alleging abuse of market power in a downstream, single-brand aftermarket. Here, however, SIS presented evidence at trial demonstrating that Intuitive leveraged its near-100% market share in the foremarket for MIST surgical robots to obtain and maintain 100% market share in the aftermarket for robot attachment instruments. SIS thus brought a standard foremarket/aftermarket tying

*

This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader.

SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC. 3

claim for which proof of the Kodak/Epic factors was not required.

The panel rejected Intuitive’s alternative argument that it was entitled to judgment as a matter of law based on the insufficiency of the evidence presented at trial. The panel concluded that Intuitive waived the argument that the evidence at trial was insufficient to establish that Intuitive possessed market power prior to SIS’s entry in the market in 2019, and that even if Intuitive had not waived the argument, the evidence at trial was sufficient for a reasonable jury to conclude that Intuitive possessed market power prior to 2019. The panel also concluded that the evidence at trial was sufficient for a reasonable jury to find that Intuitive’s process for approving third party products and services was illusory.

Accordingly, the panel reversed the judgment below and remanded for further proceedings.

4 SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC.

COUNSEL

Eric F. Citron (argued) and Kathleen Foley, Zimmer Citron & Clarke LLP, Washington, D.C.; Edwina B. Clarke and David J. Zimmer, Zimmer Citron & Clarke LLP, Cambridge, Massachusetts; Richard T. McCaulley, McCaulley Law Group, Chicago, Illinois; Joshua V. Van Hoven, Van Hoven PC, San Ramon, California; for Plaintiff-Counter- Defendant-Appellant. Kannon K. Shanmugam (argued), Kenneth A. Gallo, Paul D. Brachman, James Durling, Anna J. Goodman, Anna J. Lucardi, and Jake L. Kramer, Paul Weiss Rifkind Wharton & Garrison LLP, Washington, D.C.; William B. Michael, Joshua Hill Jr., Daniel A. Crane, and Crystal L. Parker, Paul Weiss Rifkind Wharton & Garrison LLP, New York, New York; Sonya D. Winner, Cortlin H. Lannin, and Isaac D. Chaput, Covington & Burling LLP, San Francisco, California; Kathryn Cahoy, Covington & Burling LLP, Palo Alto, California; for Defendant-Counter-Claimant– Appellee. Mariel Goetz (argued), Geoffrey M. Green, Joseph Conrad, Joseph R. Baker, and Alok Narahari, Attorneys; H. Thomas Byron III, Deputy General Counsel; Lucas Croslow, General Counsel; Federal Trade Commission, Washington, D.C., for Amicus Curiae Federal Trade Commission. Sandeep Vaheesan and Tara Pincock, Open Markets Institute, Washington, D.C., for Amicus Curiae Open Markets Institute. Joshua P. Davis and Matthew I. Summers, Berger Montague PC, San Francisco, California, for Amici Curiae Antitrust Law Professors.

SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC. 5

Kathleen W. Bradish, American Antitrust Institute, Washington, D.C., for Amicus Curiae American Antitrust Institute. Jennifer Gross and Michael R. Goodman, Olsson Frank Weeda Terman Matz PC, Washington, D.C., for Amicus Curiae Association of Medical Device Reprocessors. F.M. Haston III, Stanley E. Blackmon, and J. Turner Collins, Bradley Arant Boult Cummings LLP, Birmingham, Alabama, for Amicus Curiae American Association of Gynecologic Laparoscopists. Michael Qian, Haynes & Boone LLP, Dallas, Texas, for Amicus Curiae Advanced Medical Technology Association. Ryan M. Sandrock and Kevin P. Burke, Shook Hardy & Bacon LLP, San Francisco, California, for Amicus Curiae Medical Device Manufacturers Association. Cody S. Harris and Ian Kanig, Keker Van Nest & Peters LLP, San Francisco, California, for Amicus Curiae Food and Drug Administration Former Associate Commissioner Peter Pitts. Zac Morgan and Cory L. Andrews, Washington Legal Foundation, Washington, D.C., for Amicus Curiae Washington Legal Foundation. Amir C. Tayrani, Gibson Dunn & Crutcher LLP, Washington, D.C.; Julian Kleinbrodt and Sarah H. Roberts, Gibson Dunn & Crutcher LLP, San Francisco, California; Theodore J. Boutrous Jr., Gibson Dunn & Crutcher LLP, Los Angeles, California; for Amici Curiae International Center for Law & Economics and Scholars of Law and Economics.

6 SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC.

OPINION

KOH, Circuit Judge:

The primary question presented in this appeal is whether the district court erred in requiring Plaintiff Surgical Instrument Service Company, Inc. (“SIS”) to prove certain factors known as the “Kodak/Epic” factors in order to prove its antitrust claims. At trial, SIS introduced evidence that Defendant Intuitive Surgical, Inc. (“Intuitive”) possesses more than 99% market share in the market for surgical robots used in minimally invasive soft-tissue (“MIST”) surgery— the “foremarket”—and 100% market share in the robot attachment instruments used in such surgeries—the “aftermarket.” SIS’s theory of liability was that Intuitive leveraged its market power in the foremarket to harm competition in the aftermarket. At the conclusion of trial, the district court ultimately decided to instruct the jury that SIS needed to prove the Kodak/Epic factors in order to establish that SIS’s proposed aftermarket is a valid antitrust market. SIS conceded that the evidence was insufficient to prove the Kodak/Epic factors and stipulated to judgment in Intuitive’s favor. SIS now appeals the judgment below on the ground that the district court’s jury instruction was erroneous. In the alternative, Intuitive argues that it is entitled to judgment as a matter of law based on the insufficiency of the evidence produced at trial. For the reasons explained below, we hold that the district court’s jury instruction was erroneous and reject Intuitive’s challenge to the sufficiency of the evidence produced at trial. Accordingly, we reverse.

SURGICAL INSTRUMENT SERV. CO. V. INTUITIVE SURGICAL, INC. 7

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Surgical Instrument Service Company, Inc. v. Intuitive Surgical, Inc., (9th Cir. 2026).

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