Eastman Kodak won an important early victory in battle with Collins Ink, when US federal judge ruled the Cincinnati-based ink supplier must continue to supply Kodak with ink for the Versamark printer line.

"This injunction is good news for Kodak, but more importantly, it’s good news for our valued customers," Michael Marsh, general manager of Kodak Digital Imaging Systems said after the preliminary injunction was granted. "It’s unfortunate to have to take this situation to the courts, but we are using all our options to meet the needs of our customers in the short term and into the future. The one thing that will never change is our commitment to delivering the highest quality printing systems. Our integrated combination of imaging technology and inks is second to none."

The Rochester, NY-based photo and printing company sued Collins Ink in late October after the Ohio manufacturer abruptly ended a 10-year supplier deal and publicly stated its plan to go from Kodak supplier to competitor in the inkjet ink supply market.

Collins argued in court that is severed the ties out of fears that Kodak’s finances were so shaky that Collins could be left holding the bag for millions of dollars of unpaid orders. Collins makes 90% of the inks used in Kodak’s Versamark digital printing presses, with Kodak serving as reseller of those inks.

According to court documents, Kodak owed Collins $2.5m at the time of the lawsuit, but attorneys for Kodak noted that was the usual balance the two companies had, adding that throughout the 10-year relationship Kodak had typically paid within 60 days.

In its ruling initially in favor of Kodak, U.S. District Court Judge David Larimer noted Collins failed to follow the terms of the supplier contract that allowed for termination of the agreement. "Anxiety, nervousness or ‘buyer’s remorse’ about the wisdom of the contract does not absolve one from complying with all the terms of the contract," Larimer wrote in his ruling awarding Kodak the preliminary injunction. "If such an event (as Kodak’s insolvency) does come to pass, then Collins will have the same remedies as any other unsecured creditor of Kodak."