So, Kodak is suing Shutterfly because it claims to have invented the idea of putting pictures on the Internet.
Kodak’s decision to start legal proceedings against Shutterfly will have put scores of web-based photo companies such as Flickr and Google, on high alert, [Deborah Bould, a specialist in intellectual property at law firm Pinsent Masons] told BBC News. “The patents Kodak holds are incredibly broad, effectively covering images that are stored centrally and can be ordered online,” she said. That’s likely to mean Kodak will go after other online image sites it believes also infringe its patents, she added.
Kodak said it has over 400 similar patents.
“We are committed to protecting these assets from unauthorised use,” it said in a statement.
Given the expense of patent cases, many smaller firms may choose to licence Kodak’s technology rather than fight claims, said Theo Savvides, head of intellectual property at Osborne Clarke. But firms such as Google and Yahoo “have deep pockets” that would allow them to challenge Kodak’s claims, he added.
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Kodak has been hit hard by the shift towards digital photography, but has recently shown a greater willingness to assert its rights for technology it believes impinge on its patents.
Earlier this year Kodak said it would sue Apple and BlackBerry maker, Research in Motion, over technology used in their handsets.
This is truly preposterous. But it really doesn’t matter: As Savvides notes, simply being served with notice of an intent to file a lawsuit is enough to make startups capitulate in fear regardless of merits. Most people don’t have the ability to tie up millions of dollars for several years in the hopes of victory. It’s like the old “War Games” mantra: the only way to win is to not play.
