The
International Trade Commission is expected this afternoon to rule on whether
Apple (
AAPL) and
Research in Motion (
RIMM) infringed by their mobile devices on patents that
Eastman Kodak (
EK) holds for previewing of images, after an ITC judge
in March said instructed the commission to review an earlier rejection of Kodak’s claims.
If the judge finds in favor of Kodak, it could mean a Apple and RIMdevices would be blocked for sale in the U.S., as RBC Capital’s MikeAbramsky notes in a letter to clients this afternoon.
Abramsky lays out the possible terms for a settlement, given that anydecision tonight would have a period of up to 12 months in which itwould have to be reviewed for approval.
“Should the ITC rule in Kodak’s favor, we estimate RIM may settle for$450-550M and Apple may settle for $450-550M,” writes Abramsky.
“This estimate is based on Kodak’s Chairman and CEO Antonio Perez’s statement Kodak may receive $1B in royalties from Apple and RIM, as well as upon prior settlements with Samsung for $550M and LG [Electronics] for $414M.”
I should point out that Abramsky says the ruling’s outcome is “unpredictable,” so, I don’t think that he’s making a judgment as to which way the matter will come out tonight.
“The possible settlement equates to 17% of RIM’s $2.9B cash and 1% of Apple’s $66B cash.”
https://blogs.barrons.com/techtraderdaily/2011/06/23/apple-rim-a-kodak-win-could-mean-1b-settlement-says-rbc/