By: MATTHEW DANEMAN
Source: http://www.democratandchronicle.com
Category: Patent Infringement
Saying a favorable court ruling could represent a windfall of $100 million or more, Eastman Kodak Co. is trying to restart a patent infringement lawsuit put on hold by its Chapter 11 bankruptcy.
U.S. bankruptcy law provides for an automatic stay when a party such as a company files for bankruptcy. That automatic stay is a layer of protection against creditors, halting judicial proceedings such as lawsuits.
But Kodak has filed a motion in U.S. Bankruptcy Court asking for a modification of the automatic stay so that a lawsuit it has against online photo album company Shutterfly Inc. and personalized card printer Tiny Prints Inc. could go forward.
Kodak sued Shutterfly in 2010, alleging it was using Kodak-patented technology in its operations. The case was amended in 2011 to add Shutterfly’s newly purchased Tiny Prints and a sixth patent in question. Until Kodak filed for bankruptcy on Jan. 19, the patent infringement claims were scheduled to go to trial in 2013.
In its motion, Kodak calls it “a rare instance where ... the debtors themselves seek modification of the automatic stay.”
Shutterfly and Kodak have a tangled business relationship. Shutterfly sued Kodak in 2011, alleging Kodak was itself infringing on seven different Shutterfly patents. That case also is stayed by Kodak’s bankruptcy.
Meanwhile, as part of the restructuring Kodak is going through in Chapter 11, the company is selling its Kodak Gallery operation to Shutterfly for $23.8 million.
A hearing on the lawsuit motion is scheduled for May 10 before Judge Allan Gropper in New York City.
Source: http://www.democratandchronicle.com/article/20120503/BUSINESS/305030028/Kodak-Shutterfly-patent-infringement-bankruptcy
Source: http://www.democratandchronicle.com
Category: Patent Infringement
Saying a favorable court ruling could represent a windfall of $100 million or more, Eastman Kodak Co. is trying to restart a patent infringement lawsuit put on hold by its Chapter 11 bankruptcy.
U.S. bankruptcy law provides for an automatic stay when a party such as a company files for bankruptcy. That automatic stay is a layer of protection against creditors, halting judicial proceedings such as lawsuits.
But Kodak has filed a motion in U.S. Bankruptcy Court asking for a modification of the automatic stay so that a lawsuit it has against online photo album company Shutterfly Inc. and personalized card printer Tiny Prints Inc. could go forward.
Kodak sued Shutterfly in 2010, alleging it was using Kodak-patented technology in its operations. The case was amended in 2011 to add Shutterfly’s newly purchased Tiny Prints and a sixth patent in question. Until Kodak filed for bankruptcy on Jan. 19, the patent infringement claims were scheduled to go to trial in 2013.
In its motion, Kodak calls it “a rare instance where ... the debtors themselves seek modification of the automatic stay.”
Shutterfly and Kodak have a tangled business relationship. Shutterfly sued Kodak in 2011, alleging Kodak was itself infringing on seven different Shutterfly patents. That case also is stayed by Kodak’s bankruptcy.
Meanwhile, as part of the restructuring Kodak is going through in Chapter 11, the company is selling its Kodak Gallery operation to Shutterfly for $23.8 million.
A hearing on the lawsuit motion is scheduled for May 10 before Judge Allan Gropper in New York City.
Source: http://www.democratandchronicle.com/article/20120503/BUSINESS/305030028/Kodak-Shutterfly-patent-infringement-bankruptcy
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