FUJIFILM'S REBUTTAL REGARDING
ITS ALLEGED "CONTROL" OF THE TOKUYAKUTEN



EXECUTIVE SUMMARY


In both its May 31, 1995 and its November 6, 1995 submissions, Eastman Kodak made allegations that Fujifilm controls its primary distributors -- the tokuyakuten. Although Kodak admits that Fujifilm's direct control -- i.e., share ownership -- of the tokuyakuten is limited, it claims that indirect mechanisms of control permit Fujifilm to maintain its dominant position in the Japanese consumer markets for photographic film and paper. In both of its primary public submissions, Kodak mentioned Fujifilm's rebates and its membership in the Mitsui keiretsu as mechanisms of control. In its November 6, 1995 submission, it added to its list the guarantee deposits Fujifilm collects from the tokuyakuten.

Even if Kodak's claims had any factual merit (which they do not), they are irrelevant to the fundamental issues presented in this case. Most importantly, on December 21, 1995, Fujifilm submitted survey results that demonstrate Kodak's wide availability in Japan -- not just in the competitive "shark tanks" of Tokyo and Osaka, but throughout Japan; not just in the large stores, but particularly in the specialty camera stores that Kodak said Fujifilm had locked up. These survey results -- which USTR is welcome to verify -- demonstrate that any claims of Fujifilm's control over the tokuyakuten are simply beside the point. Such control, if it existed, is not preventing Kodak film from getting on Japanese retail shelves. Kodak's problem is getting consumers interested in buying Kodak film off of those shelves.

If Kodak's allegations were relevant, they are wrong in any event. As to each supposed mechanism of control, consider the following:

Kodak's allegations therefore fail once again. Fujifilm does not control the tokuyakuten. More significantly, such allegations are irrelevant given Kodak's broad availability in Japan. Kodak has tried to avoid the facts that destroy its case with irrelevant -- and false -- allegations.


TABLE OF CONTENTS

EXECUTIVE SUMMARY

DISCUSSION

CONCLUSION


*Please click title to download document.

Portable Document Format (full text)*** (77 KB)

Portable Document Format (figure)*** (27 KB)



*** Note:Please use Free Acrobat Reader Software through www.adobe.com when you read.



[Footer]

[Film Case Homepage]