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Collins Ink motions for Kodak open books

March 13, 2012

Ink manufacturer states Kodak has not fulfilled terms of court-ordered business dealings.

Ohio ink manufacturer Collins Ink has filed a motion in the US District Court for the Western District of New York endeavouring to seek an order that would force Kodak to open its books, claiming the printer manufacturer is not fulfilling its terms of their court-ordered business dealings.

Collins Ink, which lost a legal battle in 2011 attempting to sever ties with Kodak amid bankruptcy rumours, argue that under the terms of the supplier deal Kodak is supposed to provide Collins Ink with data on inkjet ink users and allow it to conduct an audit of Kodak. Democrat & Chronicle reports that Collins Ink claim Kodak has refused to divulge that information.

Democrat & Chronicle state that “the data [Collins is seeking] would be used to verify that Kodak is living up to certain terms of the agreement, such as that Collins Ink represents 88 percent of Kodak’s ink sales. Collins said it has heard that Kodak is beefing up its ink manufacturing operations and trying to steer customers from Collins-brand inks to Kodak inks, in violation of their agreement.”

Kodak won a preliminary injunction against Collins Ink in November 2011, stating that the ink manufacturer had to keep providing the OEM, despite Collins claiming that Kodak’s financial situation could leave the company with millions of dollars of unpaid orders.

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