Kodak wants $1B in royalties revenue from Apple, RIM
At about 5:00 PM in Washington, D.C., today, the U.S. International Trade Commission (ITC) will decide if it should review a judge's findings from January that concluded neither Apple's iPhone or RIM's Blackberry infringed patents held by Eastman Kodak Company. Antonio Perez, CEO of Kodak, told Bloomberg a victory could be worth more than US$1 billion in royalty revenue for the beleaguered company, which lost almost half its market value in the past year.
"This is a lot of money, big money," Perez told Bloomberg.
The dispute centers on a patent broadly described as an "image-preview feature in camera phones." In 2009, Kodak filed similar complaints against Korean manufacturers Samsung and LG Electronics. In those cases, both related to the same patents Apple and RIM are accused of violating, the ITC ruled in favor of the 131-year-old Kodak company. Samsung and LG paid a combined $964 million to settle the matter before it could be escalated to the ITC's full six-member commission which has the authority to ban importation of products that infringe U.S. patents.
Kodak recently reported revenue of $7.2 billion in 2010 - only half of what the company brought in five years earlier - and said two of its three main businesses operated at a loss. Nearly 12% of the company's revenue, $838 million, came from intellectual property licensing and it expects to maintain an average annual income of $250 million to $350 million from patent royalties over the next three years. These numbers don't reflect the potential $1 billion revenue windfall from RIM and Apple.
The company that made photography affordable with its Brownie and Instamatic cameras sued Apple in January, 2010, claiming the iPhone violated patents covering low resolution image previews on mobile devices. Apple filed a countersuit alleging several of its imaging patents were used without permission in some of Kodak's family of digital cameras. In January, Judge Paul Luckern decided in favor of Apple, saying the iPhone did not violate Kodak's intellectual property rights. If the ITC decides to review the case, a final decision on the matter would likely be made by May 23.
"It would be important for Kodak to get a favorable ruling on this matter because most of its operating businesses lose money whereas intellectual property royalties go directly to the bottom line," said Jim Kelleher, an analyst at Argus Research in New York.
On the New York Stock Exchange, shares of Kodak were up as much as 10% earlier today. It's Kodak's largest intraday gain since December 9, 2010, reports Bloomberg.[via AppleInsider]
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At about 5:00 PM in Washington, D.C., today, the U.S. International Trade Commission (ITC) will decide if it should review a judge's...
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If you are interested in the details of the patent claim at issue, and the specific language that is at issue, I've provided some details at http://applepatent.com.
Inb4
Apple buys kodak, fires guy that decided that kodak could collect royalties from Apple...
Actually Kodak has invented technology in the mid 1970 that led to digital photography and they were the 1st to invent the mega pixel sensor in the mid '80's and were instrumental in getting the digital photography to the public and collaborated both with "Microsoft on digital image-making software workstations and kiosks which allowed customers to produce Photo CD Discs and photographs, and add digital images to documents. IBM collaborated with Kodak in making an internet-based network image exchange." I know somebody who worked with Kodak marketing and I validated this information from this article on the internet:
http://inventors.about.com/library/inventors/bldigitalcamera.htm
You can say they invented the technology that led to their demise.
Since the mid-1970s, Kodak has invented several solid-state image sensors that "converted light to digital pictures" for professional and home consumer use. In 1986, Kodak scientists invented the world's first megapixel sensor, capable of recording 1.4 million pixels that could produce a 5x7-inch digital photo-quality print. In 1987, Kodak released seven products for recording, storing, manipulating, transmitting and printing electronic still video images. In 1990, Kodak developed the Photo CD system and proposed "the first worldwide standard for defining color in the digital environment of computers and computer peripherals." In 1991, Kodak released the first professional digital camera system (DCS), aimed at photojournalists. It was a Nikon F-3 camera equipped by Kodak with a 1.3 megapixel sensor.
The first digital cameras for the consumer-level market that worked with a home computer via a serial cable were the Apple QuickTake 100 camera (February 17 , 1994), the Kodak DC40 camera (March 28, 1995), the Casio QV-11 (with LCD monitor, late 1995), and Sony's Cyber-Shot Digital Still Camera (1996).
Yeah, but Kodak went to sleep at the wheel, and when you do that, you almost always end up crashing.
March 25 2011 at 5:17 PM Report abuse Permalink rate up rate down ReplyIf I am not mistaken, Kodak was one of the last big companies, if not the last to have a digital camera, because they were too tied to the past developing rolls of films on the dark room and never noticed the digital revolution. To compensate and award their incompetence and their CEO, now they want to have a slice of the cake created by those who innovate.
I having difficulties to picture out how one of the last companies to have a digital camera could have a patent in so basic stuff.
In my opinion, companies like Kodak with a great history, should be quiet and try to do as Eastman Kodak did, creating innovation and changing the world, instead of being a patent troll.
Very sad and adds more one negative point to Kodak in my score.
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