This sounds like an apocryphal story. Kodak did actually make copiers in the 80s/90s, I know because my elementary school had one (early 90s, in a suburb of Rochester). It was one of the very large models that do duplex, stapling, ~100 copies per minute, etc. They just presumably weren’t good enough/cheap enough to get much market share vs. Xerox and Canon. I’m not aware of any of their copiers using film, not even sure how that would work.