Polaroid Wins Ruling Against NBS Imaging

Polaroid Corp. said it won a California court ruling that could let it proceed with a $25-million contract to make driver’s licenses in the state, the largest such contract in the U.S. The California Court of Appeals reversed a lower-court ruling that allowed NBS Imaging Systems Inc., a subsidiary of Toronto’s NBS Technologies Inc., to keep the business. Polaroid won the five-year contract from California in 1995, but the instant-photography company hasn’t been able to take over because NBS sued the state and Polaroid, alleging conflict of interest because a Polaroid subcontractor once served the state as a consultant. NBS plans to ask the court to reconsider, company attorney Michael Franchetti said. If rejected, NBS will appeal to the California Supreme Court. If NBS loses in both courts, Cambridge, Mass.-based Polaroid could begin producing the licenses next year, Franchetti said. A Polaroid spokesman wasn’t available to comment. NBS has produced California’s driver’s licenses for 35 years, according to the ruling. Polaroid shares rose 63 cents to close at $49.38 on the New York Stock Exchange.