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Kodak sues Collins Ink for contract breach

October 21, 2011

The OEM is mounting a legal battle a week after Collins cancelled its ink supply contract.

Kodak has launched legal action against its former ink supplier Collins Ink for breach of contract, a week after the company cancelled its supply deal with the OEM, reports WhatTheyThink.

As The Recycler previously reported, Collins had previously been supplying ink for the Versamark range of printers for the last 10 years, but announced it would cancel the contract last week  citing
Kodak’s “financial situation”.

 Now Kodak has brought action against Collins in the US District Court, Western District of New York, accusing it of causing a variety of harm to the business.

The main issue appears to be the speed with which Collins attempted to sever its ties. Kodak says the supplier failed it give the proper 180 day notice, threatening the OEM’s ability to keep customers supplied.

Collins stated previously that it would now supply Versamark owners with fresh ink directly, and Kodak states it has been “left defenceless” as Collins and other competitors “prey” on former customers that Kodak can no longer supply.

Kodak is seeking an injunction that will guarantee customers an uninterrupted supply during the transition, and also seeks damages for unfair competition, breach of contract, misappropriation of trade secrets, and several other points.

Collins CEO Lawrence Gambin told WhatTheyThink that the departure was far from sudden, and the company had legitimate fears it would not be paid for shipments.

Kodak has seen a difficult year as it transitions from a focus on camera to printer manufacturing, and although there has been a nearly 50 percent boost in inkjet printer revenue, stocks have fallen sharply as investors balk.

Categories : City News

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