US ITC sides with Kodak in Apple patent dispute

THE US INTERNATIONAL TRADE COMMISSION (ITC) has sided with Kodak in a lawsuit brought against it by Apple, saying it did not infringe Apple's patents.

The initial ruling came from one of the ITC's judges and acts as a recommendation for what the full ITC panel should find on 19 September, the day that the final decision in the case is due, according to Reuters.

Another ruling is expected on 23 May for a complaint lodged by Kodak against Apple and RIM. Kodak said both companies infringed one of its patents relating to mobile phone cameras.

The Kodak case was originally filed in February of last year, but the ITC issued a negative initial determination of Kodak's claims in January, which did not bode well for the upcoming final decision.

However, in March Kodak gained a review of the initial recommendation, which means the decision might not be as clear cut as originally thought. Its shares jumped over 20 per cent at the time, as investors saw strong potential for Kodak to bring in substantial funds in a settlement with Apple.

Kodak makes a lot of money from its over 1,000 patent licences, which brought in an estimated $630m in 2010 alone, according to Argus Research. Over the last two years Kodak won patent cases against LG and Samsung, bringing in $400 million and $550 million respectively

2011 could be another big winner for Kodak if the ITC finds that Apple infringed the camera company's patents, with the potential for Kodak to bring in up to $1bn in licensing fees from Apple and RIM this year.

The ITC can also bar Apple from importing products into the US that make use of infringing technology, but most companies opt to pay royalties instead of pulling their products from the market.

Kodak's share values rose after the announcement. In after hours trading Kodak's shares jumped $0.20. or 7.02 per cent, to $3.05. The share price fell today to $2.85 at the time of writing, but that's still an increase over previous days. µ