In March 2006, the two companies entered into an exclusive agreement for the distribution of Lucky Film products in North America, with Lucky Film‘s color photographic paper as the key product. Quality issues along with patent agreements between Lucky and Kodak (which provided emulsion and other photographic technology to Lucky Film in conjunction with an investment in that company) prevented Royal Marketing from delivery promised products to its customers in North America, resulting in a substantial loss of business.
Before dealing with Lucky Film, Royal Marketing had been in business for 25 years and gained a reputation as a successful independent distributor of Konica Minolta‘s photo imaging products, catering to the cruise line industry among others. “Our deal with China Lucky killed our business”, said Bob Bakhsh, President of Royal Marketing. “We have never been able to recoup the losses we sustained to our goodwill nor were we able to locate any alternate suppliers. The jury made it clear that China Lucky Film Corporation harmed us, and after everything they put us through, they have refused so far to pay any of the sums ordered by the jury.”