Electronics For Imaging Lawsuit

Trade forum weighs Kodak patent dispute with Apple

(AP)  ROCHESTER, N.Y. (AP) — Embattled photography pioneer Eastman Kodak Co. is nearing the end of a high-stakes patent-infringement fight with smartphone giants Apple Inc. and Research in Motion Ltd.

The 131-year-old Rochester, N.Y.-based company argued in a January 2010 lawsuit that image-preview technology it patented in 2001 was infringed by iPhone maker Apple Inc. of Cupertino, Calif., and BlackBerry maker Research in Motion Ltd. of Ontario, Canada.

Chief Executive Antonio Perez estimates Kodak could draw up to $1 billion from its deep-pocketed rivals if it gets a favorable ruling Thursday before the U.S. International Trade Commission in Washington, D.C.

Because the federal agency can block imports of patent-infringing products, Apple and RIM could be forced to spend hundreds of millions of dollars in licensing fees to bring in smartphones made overseas.

Both Apple and RIM have declined to comment on the case.

A triumph for Kodak would also lift some pressure on the maker of cameras, film, photo kiosks and inkjet printers as it struggles to redefine itself as a 21st-century powerhouse in digital imaging.

Its dispute with Apple and RIM centers on technology Kodak created for extracting a still image while previewing it in the camera's LCD screen. In 2009, the trade commission ruled that South Korean mobile phone makers Samsung Electronics and LG Electronics infringed the same patent, resulting in $964 million in payouts.

Kodak has amassed more than 1,000 digital-imaging patents since the 1970s, and almost all of today's digital cameras rely on those inventions. It has licensed digital technology to at least 30 companies, including mobile-device makers such as Motorola Inc. and Nokia Corp.

Mining its rich array of inventions for repeated cash infusions has become an indispensable tactic driven in large part by Kodak's long and painful digital turnaround.

Since 2004, Kodak has reported only one full-year profit — in 2007 — and anticipates another annual loss this year before crossing back to profitability sometime in 2012. It has trimmed its work force to 18,800 from 70,000 in 2002.

Kodak has a promising array of new businesses, but it needs to tap other sources of revenue before investments in those areas have time to pay off.

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U.S.A. international trade committee ITC Will announce the net result that Kodak prosecutes apples and patent RIM case of encroachment of right on Thursday. Kodak litigated in January of 2001, accused the digital lenses of iPhone and black strawberry mobile phone infringed a photo preview technical patent of this company.

Has shown in March of this year, if gain this lawsuit, Kodak will get compensation of 1 billion dollars from apple and RIM. He thinks, if Kodak wins a lawsuit, then apple and RIM would like to conciliate with Kodak, will not take the risk that the products are forbidden being sold on the American market, because international trade committee have the right, order customs stop the intersection of inlet and disputable product and part from technical patent, and apple and RIM may be forced to pay the patent fee of several hundred million dollars. So far, apple and RIM could put to this.

Committee announced on the official site international trade last week, Kodak told pronouncing date and prolonging until June 30 of apples, RIM case of encroachment of right. The international trade committee had not announced that had postponed the reason to pronounce at that time. In January of this year, the court asserts iPhone and black strawberry mobile phone have not infringed the patent about preview technology of the digital picture of Kodak, the international trade committee has been assessing this judgement of the court before this.

Kodak has digital imaging patent of 1000 multi-type, nearly all digital cameras should depend on their technology at present. From 2004 to 2007, Kodak cost the expenses of 3,400 million dollars, transfers its most business from film imaging of the high profit rate to electronic imaging. Kodak has already authorized about 30 companies use its digital imaging technology, including LG electron, Motorola, Nokia and Sony Ericsson,etc., all these companies need to pay the use fee of the patent to Kodak. In 2009, the international trade committee has adjudicated Samsung and LG electron infringed a patent of Kodak, the latter has won compensation up to 964 million dollars too.

From the year 2004 till now, Kodak realized a annual profit only in 2007. In 2002, Kodak cut down staff’s total number from 70,000 people to 18,800 people. Kodak has a series of new business rich in the prospect at present, but before the investment acquisition of the business is reciprocated, this company must find the new camp to accept and flow. The present business with growth prospect of Kodak includes: Consume business of the ink printer, high speed commercial ink printer business, workflow software, and capsulate the business. The above-mentioned business is expected to nearly double in 2013, it is about 2 billion dollars that the camp charges reaching. When the time comes, the above-mentioned 4 big business will occupy 25% that Kodak chief camp accepted.

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