Photo Finished? Shutterfly Suit Seeks To Shutter My Kodak Moments Facebook App

By David Cohen 

Online photo-album provider Shutterfly may have a Kodak moment in court, as the company filed a lawsuit against Eastman Kodak in U.S. Bankruptcy Court for the Southern District of New York, claiming that the My Kodak Moments application Kodak introduced at the 2012 International Consumer Electronics Show in Las Vegas in January violates a noncompete agreement between the two companies, as reported in the Democrat and Chronicle of Rochester, N.Y.

My Kodak Moments allows Facebook users to create premium photo books made up of images from their profiles and those of their friends.

According to the lawsuit, as reported by the Democrat and Chronicle, when Kodak sold its Kodak Gallery online photo album business to Shutterfly for $23.8 million as part of the former’s Chapter 11 bankruptcy, one of the terms of the deal was an agreement by Kodak to not compete in the online photo album for three years, and My Kodak Moments violates that agreement.

Shutterfly said in the suit that it had “multiple communications” with Kodak, which denied that My Kodak Moments violated the terms of the pact between the two companies and refused to pull the plug on the app, and Kodak spokesman Christopher Veronda told the Democrat and Chronicle his company was still reviewing the lawsuit.

Readers: How do you think this lawsuit will end up playing out?