Telecomm Technical Services, Inc. v. Siemens Rolm Communications, Inc.

172 F.R.D. 532, 1997 U.S. Dist. LEXIS 3084, 1997 WL 154783
CourtDistrict Court, N.D. Georgia
DecidedFebruary 4, 1997
DocketCivil Action No. 1:95-CV-0649-WBH
StatusPublished
Cited by12 cases

This text of 172 F.R.D. 532 (Telecomm Technical Services, Inc. v. Siemens Rolm Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Telecomm Technical Services, Inc. v. Siemens Rolm Communications, Inc., 172 F.R.D. 532, 1997 U.S. Dist. LEXIS 3084, 1997 WL 154783 (N.D. Ga. 1997).

Opinion

ORDER

HUNT, District Judge.

This case is before the Court on the following motions: (1) plaintiffs Telecomm Technical Services, Inc. (“Telecomm”), RealCom Office Communication, Inc. (“RealCom”), Nova USA Telecommunications Co. (“Nova”)1, American Telecom Corporation (“ATC”), DD Hawkins Communications, Inc. (“DD Hawkins”), Start Technologies Corporation (“Start”)2, CMS Communications, Inc. (“CMS”), and Olde York Valley Inn’s Motion to Strike Letter Communication to the Court [189]; (2) plaintiffs’ Motion for Protective Order [190-1]; (3) plaintiffs’ Motion for Class Certification [200-1]; (4) plaintiffs’ Motion for Pretrial Order [221-1]; (5) defendant Siemens Rolm Communications, Inc.’s3 (“Rolm”) Motion for Leave to File Surreply in Opposition to Plaintiffs’ Emergency Motion for Protective Order to Prohibit Defendant from Communicating with Absent Class Members [178-1]; (6) defendant’s Motion to Compel Answers to Interrogatories Related to Class Discovery [183-1]; (7) defendant’s Motion to Compel Production of Documents Relating to Class Certification [187-1]; (8) defendant’s Motion to Compel Answers to Deposition Questions [197-1]; (9) defendant’s Second Motion to Compel Production of Documents Relating to Class Certification [199— 1]; (10) defendant’s Third Motion to Compel Production of Documents Relating to Class Certification [205-1]; (11) defendant’s Motion to Compel Answers to Deposition Questions by Richard A. Kuehn [206-1]; (12) defendant’s Motion to Strike Plaintiffs’ New Evidence Submitted with Reply Memorandum in Support of Motion for Class Certification [222-1] or, in the Alternative, to File a Surreply Brief [222-2]; (13) defendant’s Motion for Leave to File Memorandum with Respect to New Developments Relevant to Plaintiffs’ Motion for Class Certification [231-1]; and (14) parties’ Joint Motion for Leave to File Corrected Copy of the Joint Preliminary Statement and Scheduling Order [176-1],

I. BACKGROUND OF CLASS ALLEGATIONS

A. The Parties

Defendant Siemens Rolm Communications, Inc., sells and services Rolm-brand Private [536]*536Branch Exchange (“PBX”) telephone switching equipment.4 PBX equipment is used typically by businesses to receive and make telephone calls where fifty or more telephone lines are necessary for the business. Rolm sells not only PBXs but also the parts which comprise the PBX, both new and used', and the software used to ran the switch. Rolm additionally offers service and. maintenance for PBXs already in use.

Plaintiffs Telecomm, DD Hawkins, Real-Corn, CMS, Nova, and ATC all allege to be or to have been independent service organizations (“ISOs”) actually competing with Rolm in the area of servicing Rolm PBX equipment.5 Start is a “self-service” ISO, which means that it services the Rolm PBX equipment used in its business. Although Start has provided service to other., businesses at various times, according to the Second Amended Complaint, it is not an actual competitor of Rolm at this time. Instead, it would be considered a “potential” competitor. Plaintiffs Start and RealCom also allege that they are “End Users” of Rolm PBX equipment in that they employ Rolm PBX equipment to provide telephone exchange services and have used Rolm to maintain or upgrade the PBX equipment.6 Plaintiff Olde York Valley Inn has used Rolm PBX equipment and, at some point, purchased service directly from Rolm. None of these proposed End User class representatives currently uses or purchases Rolm-provided service for Rolm PBXs.

B. Allegations of Second Amended Complaint

Plaintiffs bring this action pursuant to sections four and sixteen of the Clayton Act, 15 U.S.C. §§ 157 and 268 for damages and injunctive relief for violations of sections one and two of the Sherman Act, 15 U.S.C. §§ 19 and 210. Plaintiffs allege that Rolm has violated section one of the Sherman Act through [537]*537an illegal tying arrangement by which Rolm requires End Users to purchase Rolm-provided service to obtain Rolm proprietary parts11 for the Rolm PBX equipment (“Count One”). Plaintiffs contend that End Users often need Rolm-manufactured parts without requiring the Rolm-provided service. However, plaintiffs argue that Rolm will not release the parts to End Users either who do not agree to have Rolm provide the service related to the needed parts or who do not agree that they will use the parts themselves and not “transfer” those parts to third parties. Thus, plaintiffs allege that Rolm has violated section one by suppressing competition in the United States for sale of service for the PBXs thus injuring the ISOs and that Rolm has overcharged End Users for service thus entitling the End Users to damages.

In Count Two, plaintiffs similarly allege that Rolm requires End Users to purchase Rolm-provided service to get access to Rolm proprietary software12 which is needed to operate the Rolm PBX. Plaintiffs complain that Rolm’s actions in tying the access to software to the purchase of Rolm-provided service is in violation of the antitrust laws by suppressing competition and allowing price discrimination.

Lastly, plaintiffs allege that Rolm has an unlawful monopoly over the market for service of Rolm PBXs, or in the alternative, has attempted to exercise an unlawful monopoly over that market. Their contentions include that Rolm

has the power to control prices or exclude competition in the relevant market for service of ROLM PBXs by virtue of (a) its concentrated market share, which is, upon information and belief, approximately eighty percent (80%); (b) its control in separate and distinct relevant markets over the ROLM proprietary parts and software required by ISOs to service ROLM PBXs; and (e) barriers to ISO entry or expansion in the service relevant market created and enhanced by virtue of ROLM’s parts and software policies.

Second Amended Complaint H133. Plaintiffs maintain that this conduct violates section two of the Sherman Act, 15 U.S.C. § 2.

The plaintiffs request, inter alia, the following relief:

(1) that the Court issue a declaratory judgment finding that Rolm violated section one of the Sherman Act through “illegal per se tying[] or unreasonable restraints of trade[ ] excluding and disadvantaging competition in the relevant market for service of Rolm PBXs” and/or that Rolm violated section two of the Sherman Act through its “unlawful maintenance of its monopoly power in the relevant market for service of ROLM PBXs ... and/or ... [through its] unlawful attempt to monopolize the relevant market for service of ROLM PBXs,” Second Amended Complaint at 36-37;

(2) that the Court enjoin Rolm from “continuing their unlawful actions” as alleged in the Second Amended Complaint, Second Amended Complaint at 37; and

(3) that the Court award treble damages, id.

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Cite This Page — Counsel Stack

Bluebook (online)
172 F.R.D. 532, 1997 U.S. Dist. LEXIS 3084, 1997 WL 154783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/telecomm-technical-services-inc-v-siemens-rolm-communications-inc-gand-1997.