Wednesday, May 21, 2014

Kodak spinoffs in major fight over microfilm

ROCHESTER, N.Y. -- We may live in a digital age, but online is not always the best place to store every piece of information.

Numerous publishers, libraries, museums and corporations keep archives on microfilm or microfiche. And a pair of Eastman Kodak Co. spinoffs are battling each in the business world — and in court — over a slice of that market.

Dallas-headquartered Eastman Park Micrographics Inc. is suing Kodak Alaris Inc. in New York state Supreme Court, alleging that Alaris is trying to pilfer EPM's customers in violation of an agreement between the two companies. EPM contracts with Alaris to provide the engineers needed to maintain and support its equipment in the United States and Canada.

The suit was filed last week in state Supreme Court in Monroe County — just days after Alaris bought EPM's business servicing equipment in Europe, Asia and Latin America. Financial details of that deal, which was effective April 30, were not made public. The two companies, in announcing the deal, said Alaris will continue to distribute EPM equipment and supplies in those markets.

Kodak sold its microfilm and microfiche business in 2011 to EPM, a company founded by former Kodak executive William Oates. While based in Dallas, EPM also operates out of Eastman Business Park in Rochester. Alaris is headquartered in the United Kingdom, but its principal location is also at Eastman Business Park.

Kodak continued to provide maintenance and support of equipment to EPM after the 2011 sale. And when Kodak's document imaging and personalized imaging businesses were sold in 2013, forming Kodak Alaris, Alaris then picked up the EPM service work.

But according to the suit, when EPM indicated to Alaris in December that it intended to end that service provider agreement in May 2014, Alaris began using confidential information to begin soliciting those customers, offering them deep discounts to jump ship. As part of the suit, EPM included Alaris brochures "that not only overtly solicit t! hose customers but also disparage EPM's ability to service those customers' micrographics equipment," the suit states.

EPM is seeking damages of upward of $1 million, plus a permanent injunction banning any further customer solicitation.

Alaris did not respond to a message seeking comment Monday.

No comments:

Post a Comment