Shutterfly has filed a suit to stop a new Kodak app that allows users to construct and order photo albums made from pictures the user has stored on Facebook. Shutterfly filed a complaint with the US Bankruptcy Court New York that the “My Kodak Moments App” violates a deal Kodak signed to not set up a duplicate business, and that the technology Kodak is using is the same as the one Shutterfly purchased from the fallen giant.
In March of 2102, Kodak signed a deal with Shutterfly, moving 75 million users and their photos to the newer service. The price behind the deal wasn’t disclosed, but did remark that it involved a “stalking horse” bid, where a company agrees to make a minimum bid to keep the price at a guaranteed level if someone else makes an offer. The deal left open the possibility for someone else to secure the deal if they were willing to pay a premium, but got no offers for the service.