Kodak Seeks to Resume Patent Infringement Lawsuit Against Shutterfly

Submitted by patentadmin on Mon, 05/07/2012 - 13:50

May 7, 2012 - Eastman Kodak Co.'s patent infringement lawsuit against Shutterfly Inc. and Tiny Prints Inc., a printer of personalized cards, is currently on hold because of Kodak's Chapter 11 bankruptcy. However, Kodak has filed a motion in U.S. Bankruptcy Court to modify the automatic stay on the lawsuit and allow it to proceed.

Kodak is apparently confident about its chances for success in the lawsuit and predicts that a favorable court ruling could bring in a much-needed $100 million or more. The lawsuit dates back to 2010, when Kodak sued Shutterfly over the infringement of six patents. Another patent case, filed by Shutterfly in 2011 against Kodak, is also stayed by the bankruptcy.

And as part of its restructuring efforts, Kodak is selling its Kodak Gallery to Shutterfly for $23.8 million.

Kodak acknowledges in its motion that this is "a rare instance where ... the debtors themselves seek modification of the automatic stay."