Shutterfly and Kodak are walking away from a legal battle that erupted after Shutterfly purchased Kodak’s online photo service, the Wall Street Journal reported today. During Kodak’s bankruptcy, Shutterfly scooped up Kodak Gallery in a $23.8 million deal. Shutterfly later sued Kodak, claiming that the company’s new My Kodak Moments social-networking application violated the deal’s no-compete clause. Kodak, in bankruptcy at the time, disputed Shutterfly’s claims and pledged to “vigorously defend” itself against the suit. The companies have “consensually resolved” the lawsuit, according to a one-page filing in bankruptcy court that offered no further details.
