In a decision of far-reaching significance, a federal circuit court in 1985 ruled that the Eastman Kodak Company had infringed the instant-camera patents held by Polaroid. The court ordered Kodak to cease making and selling its own instant camera, a product on which Kodak had sunk many millions of dollars in an effort to beat out Polaroid and bolster its position as a camera and film manufacturer. The ruling, which capped a nine-year legal battle between the two concerns, stunned the financial world and came as a severe blow to Kodak, while allowing Polaroid to breathe a vast sigh of relief. Damages have yet to be set as of this writing, but they could go as high as fourteen billion dollars.

The dispute was only the most recent proof that the U.S. patent system continues to play a major role in the world’s economic affairs; two hundred years after its inception in 1790, its rulings reach into everyone’s lives. The system also accomplishes what it was set up to do: By providing an incentive for creativity, it promotes the advance of commerce and industry in the United States.

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