Research In Motion Sues Kodak Over Camera Patents (Update2)
By Susan Decker
Nov. 21 (Bloomberg) -- Research In Motion Ltd., maker of the BlackBerry e-mail device, sued Eastman Kodak Co. to challenge four of its patents, including ones for digital-camera technology used in mobile phones.
Kodak, the 128-year-old photography company, this week filed a U.S. trade complaint against Samsung Electronics Co. and LG Electronics Inc. seeking to ban imports of mobile phones with digital cameras and alleging infringement of two of the patents.
Kodak has claimed BlackBerrys, including the Pearl, use the technology as well and demanded “exorbitant royalties” during five meetings over the past year, Research In Motion said in the complaint filed yesterday in federal court in Dallas. Research In Motion wants a court to rule that the patents are invalid, not infringed or unenforceable.
In an Aug. 16, 2007, letter sent to Research In Motion Chief Executive OfficerJim Balsillie, Kodak claimed that “devices that include a digital camera are utilizing Kodak’s patented technology,” according to the complaint.
Research In Motion, based in Waterloo, Ontario, has its U.S. offices in Irving, Texas. The company started selling the new BlackBerry Storm, a touch-screen phone, to compete with Apple Inc.’s iPhone 3G.
Kodak, based in Rochester, New York, said in the August letter that it began a program in 2001 to license its patents for digital imaging technology.
Digital Revenue
“We are disappointed that RIM has chosen to end discussions that appeared to be on a reasonable path forward,” David Lanzillo, a Kodak spokesman, said today by e-mail. “The Kodak patents targeted by RIM are valid and enforceable.”
The company is eliminating jobs and forecasting a third- straight annual sales decline, in part because of what’s expected to be a slow holiday season for sales of still and video cameras and digital picture frames.
Kodak last month said digital revenue would increase 1 percent to 4 percent this year, down from its initial projection for growth of as much as 10 percent.
Chief Executive Officer Antonio Perez told investors in February that Kodak could make an average of $250 million to $350 million a year in licensing revenue from its patent portfolio.
Kodak rose 9 cents, or 1.3 percent, to $6.93 at 4:04 p.m. in New York Stock Exchange composite trading. Research In Motion rose $3.28, or 7.9 percent, to $44.80 in Nasdaq Stock Market trading.
The case is Research In Motion Ltd. v. Eastman Kodak Co., 08cv2075, U.S. District Court, Northern District of Texas (Dallas).
The Samsung cases are Eastman Kodak Co. v. Samsung Electronics Co., 08cv6511 and 08cv6513, both U.S. District Court, Western District of New York (Rochester). The ITC case is In the Matter of Mobile Telephones and Wireless Communications Devices, 2639, U.S. International Trade Commission (Washington).
To contact the reporter on this story: Susan Decker in Washington atsdecker1@bloomberg.net.
Last Updated: November 21, 2008 16:18 EST