Shutterfly sues Kodak over photo app
25 Mar 2013
Photo service Shutterfly Inc is taking legal action against Eastman Kodak Co over an app that lets users purchase photo albums made from pictures stored on Facebook Inc's social media network, Reuters reported citing court documents.
The company bought the Kodak Gallery online photo business for $23.8 million last year, and under the deal Kodak undertook not to set up a rival business, court documents reveal.
Shutterfly said in a complaint filed yesterday with the US Bankruptcy Court in Manhattan that the "My Kodak Moments App" violated the sale agreement as it set up a competing business.
With the app, users can choose photos on Facebook to create an album which is then printed and sent to them.
The complaint also alleged it was powered by the same technology that powered the business purchased by Shutterfly.
Kodak, which filed for bankruptcy early last year, said yesterday that it had closed on its $848-million finance package that helped prepare it to exit bankruptcy in the middle of this year.
Following reorganisation, the company plans to focus on its commercial imaging business.
