Universal Avionics Systems Corp. v. Rockwell International Corp.

184 F. Supp. 2d 947, 2001 U.S. Dist. LEXIS 13203
CourtDistrict Court, D. Arizona
DecidedJuly 17, 2001
DocketCIV. 97-028 TUC ACM
StatusPublished
Cited by1 cases

This text of 184 F. Supp. 2d 947 (Universal Avionics Systems Corp. v. Rockwell International Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Universal Avionics Systems Corp. v. Rockwell International Corp., 184 F. Supp. 2d 947, 2001 U.S. Dist. LEXIS 13203 (D. Ariz. 2001).

Opinion

ORDER

MARQUEZ, Senior District Judge.

Universal Avionics Systems Corporation (“Universal” or “Plaintiff’) brings this action against Rockwell International Corporation and Rockwell Collins, Inc. (“Collins” or “Defendants”) alleging numerous antitrust violations. Specifically, Universal alleges violation of § 2 of the Sherman Act — attempted monopolization, 1 violation of § 1 of the Sherman Act, 2 and § 3 of the Clayton Act 3 — exclusive dealing, contracts in restraint of trade, and tying arrangements. Universal also advances two claims under Arizona common law — tor-tious interference with business relationships and prospective economic advantages, and unfair competition and business practices. Collins asserts three counterclaims against Universal — defamation per se, defamation per quod, and unfair competition.

Pending before the Court are cross-motions for summary judgment, one filed by Universal and five filed by Collins. This Order will address only the merits of Collins’ Motion for Partial Summary Judgment and for Other Relief Relating to Plaintiffs Asserted “Lock-in” Submarkets (“Lock-In Motion”). Because the Court grants Collins’ Lock-In Motion and thus, declines to define the relevant market as proposed by Universal, as including FMSs for aircraft equipped with a Collins integrated FCSs, the Court finds it unnecessary to comment on the merits of the remaining motions.

Judgment as a matter of law is available “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Fed. R.Civ.P. Rule 56(c). The initial burden is on the moving party to show that there is an absence of evidence to support the non-moving party’s case. Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the initial showing has been made, the burden shifts to the non-moving party to designate specific facts showing there is a genuine issue for trial. Id. at 324, 106 S.Ct. 2548.

In deciding whether there is a material issue of fact, the court must believe the *951 nonmoving party’s evidence, must draw all justifiable inferences in its favor, and assume that its nonconclusory version of any disputed issues of fact are correct. Multistate Legal Studies, Inc. v. Harcourt Brace Publ., Inc., 63 F.3d 1540, 1545 (10th Cir.1995).

While summary procedures should be used sparingly in complex antitrust litigation where motive and intent play leading roles, if there is no genuine issue of material fact, and if the resisting party does not present a record sufficient to support a reasonable finding in its favor, a district court has a duty to grant the motion for summary judgment. Filco v. Amana Refrigeration, Inc., 709 F.2d 1257, 1260 (9th Cir.1983).

I. Introduction

Collins develops, manufactures, and sells avionics and communications equipment. It markets and sells most of its products directly to airframe manufacturers (“OEMs”) for installation in new aircraft. Collins also sells directly to aircraft purchasers or “end-users.”

Among the products that Collins manufactures and sells are flight control systems (“FCSs”) and flight management systems (“FMSs”) for general aviation aircraft, planes with fewer than 100 seats. The FCS is the center or core of the avionics system of an aircraft. It is where the autopilot resides. Since the FCS is the heart of the system, all of the other components comprising the avionics system must be able to communicate or interface with the FCS.

The middle level of the avionics system houses the navigation avionics such as the FMS. Essentially, the FMS collects and processes data from various sensors and antennae on an aircraft, such as wind speed, velocity, and location, and displays the data on monitors located in the cockpit of the aircraft. The FMS also communicates with the autopilot and the FCS of the aircraft. An FMS is used together with the FCS to assist the pilot in making navigational and other flight decisions.

Collins manufactures and sells its FCS under the names “Pro Line 4” and “Pro Line 21.” The company offers its FMS as part of an integrated Pro Line 4 and Pro Line 21 shipset. 4 It does not sell its FMS as a separate stand alone unit. Collins’ system was designed to give the owner of an aircraft the option of installing the Collins FMS or a different vendor’s FMS in their aircraft. Thus, a non-Collins FMS can be integrated with a Collins Pro Line 4 and Pro Line 21 to the same extent as a Collins FMS can be integrated with its own Pro Line 4 and Pro Line 21. But in order to install a Universal or any non-Collins FMS to operate with a Collins Pro Line 4 or Pro Line 21, the FMS must be able to interface or communicate with the Pro Line 4 and Pro Line 21 shipset. To accomplish this interface, Universal, or any other manufacturer of FMSs, needs access to Collins’ technical interface data or “data dictionary.” Without access to this crucial instruction manual, Universal alleges that it cannot sell its FMS for aircraft equipped with a Collins integrated FCS, such as the Pro Line 4 and Pro Line 21.

Universal manufactures and sells aviation electronic products including FMSs but does not sell its own FCSs. Universal sells its FMSs to OEMs and end-users for installation on aircraft equipped with FCSs manufactured by Collins as well as those manufactured by other companies. Universal contends that by imposing contractual restrictions on disclosure and use of *952 their “data dictionary,” Collins prevented JCAB, TAG, Air Canada, Saab, Bombardier, and Raytheon from purchasing a Universal FMS to be interfaced with a Collins FCS.

II. Defining the Relevant Product Market

Universal argues that Collins has violated the antitrust laws in three ways: 1) by attempting to monopolize, and actually monopolizing, 5 the sale of FMSs for aircraft equipped with a Collins FCS; 2) by tying the sale of a Collins FCS to the purchase of an inferior and more expensive Collins FMS; and 3) by entering into exclusive dealing arrangements with OEMs that require OEMs to buy and install Collins FMS products.

Defining the relevant product market is a fundamental element of each of these antitrust claims. U.S. Anchor Mfg., Inc. v. Rule Industries, Inc., 7 F.3d 986, 994 (11th Cir.1993) (“Defining the market is a necessary step in any analysis of market power and thus an indispensable element in the consideration of any monopolization or attempt case arising under section 2.”); Jefferson Parish Hosp.

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184 F. Supp. 2d 947, 2001 U.S. Dist. LEXIS 13203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/universal-avionics-systems-corp-v-rockwell-international-corp-azd-2001.