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Kodak asks court to modify stay to proceed with Shutterfly patent suit
By Caroline Salls
Pittsburgh, May 2 - Eastman Kodak Co. asked the U.S. Bankruptcy Court for the Southern District of New York to modify the automatic stay imposed by its bankruptcy filing to allow a patent infringement case against Shutterfly, Inc. and Tiny Prints, Inc. to proceed, according to a Wednesday court filing.
The company said the patent infringement lawsuit would result in $100 million or more in damages for the benefit of its stakeholders.
According to the motion, Shutterfly and Tiny Prints filed a motion with the Delaware district court seeking a stay of the lawsuit in its entirety, primarily on the basis that their defenses and identical counterclaims are stayed by Kodak's bankruptcy filing.
Kodak said defendants Shutterfly and Tiny Prints "have improperly sought to use the bankruptcy automatic stay as a shield against the debtors' claims."
"Moving these claims to prompt resolution is important to protect the value of the debtors' intellectual property and demonstrates the value of the patents at issue in the Delaware action, which the debtors have offered for sale," Kodak said in the motion.
"The automatic stay is a fundamental protection afforded to debtors under the Bankruptcy Code - the Shutterfly defendants should not be permitted to hide behind section 362 to indefinitely delay resolution of the debtors' valuable patent infringement claims."
A hearing is scheduled for May 10.
Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19. Its Chapter 11 case number is 12-10202.
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