Kodak spent 7 years inventing around Polaroid. A court shut it down.

In 1969, Kodak wanted into instant photography. One company owned it: Polaroid. Kodak knew the product well. From 1963 to 1969, it had manufactured components of Polaroid's own instant film.

Option one: invent around Polaroid's patents, and build an instant product that does not rely on them. Option two: license the patents. What would you have done?

Kodak chose to invent around them, aiming to put an instant product on the market by 1976. It believed clean-room invention could outrun the patent thicket.

Polaroid sued Kodak in April 1976. In 1986, a permanent injunction barred Kodak from making or selling instant film or cameras, effective January 9. In October 1986, the Supreme Court refused to hear Kodak's appeal.

Kodak had sold roughly $1.4 billion in instant cameras and film since 1976. Now 16.5 million owners of Kodak instant cameras had no source of film.

And in October 1990, a federal judge ordered Kodak to pay Polaroid $909.5 million for patent infringement.

Inventing around a patent is a bet on how a court will read it. One case does not prove licensing always wins. But price that bet before you build.