Shutterfly Inc., the online photo-sharing service, sued bankrupt Eastman Kodak Co., accusing it of violating a noncompetition agreement included in the sale of its Kodak Gallery business, Bloomberg News reported on Friday. A Kodak service called My Kodak Moments, which allows users to create photo books and order prints from their smartphones, is "explicitly prohibited" under the agreement, Shutterfly said in a complaint filed in bankruptcy court on Friday. Shutterfly, based in Redwood City, Calif., last year agreed to buy Kodak Gallery, another online photo-sharing business, for $23.8 million. Kodak Gallery competed with Shutterfly, and a "significant driver" of the purchase price was the noncompete agreement, Shutterfly said in its court filing.
