Kodak extends contract with Collins Ink after dispute

Oct 26, 2011

Eastman Kodak has wrangled an extension of its supply contract with Collins Ink less than a week after launching legal action when the company abruptly cancelled their agreement, according to the Democrat and Herald.

As previously reported, Collins Ink had been manufacturing ink for the Versamark printer range for the last 10 years, but suddenly announced it would ditch the OEM over financial fears. Kodak proceeded to sue Collins, with its chief complaint being that Collins had breached the contract by not giving enough notice. 

Now the two companies have apparently agreed to extend the supply contract by a further 10 days. Details of the agreement are confidential, but it will go at least some of the way to addressing Kodak’s concerns over losing its Versamark customers.

Kodak claimed in its lawsuit that Collins had deliberately cancelled the contract so abruptly so that it could “prey” on former Kodak customers by directly supplying them. Notably, it seems the supply contract was already due to expire in December. However, Collins insists that it had serious, long-term worries over Kodak’s finances, and there was nothing sudden about the move.

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