Kodak wants ruling that Apple, FlashPoint hold no interest in patents

By Jim Witters

Wilmington, Del., May 14 - Eastman Kodak Co. has asked the court to order that Apple Inc. and FlashPoint Technology, Inc. have no interest in the patents held in Kodak's digital capture portfolio, according to documents filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Kodak claims that Apple and FlashPoint are trying to "delay and derail" the company's efforts to sell the portfolio, which is a collection of patents that all relate to digital imaging, according to court documents.

The company calls the sale of the portfolio "a centerpiece of the debtors' reorganization efforts."

"The monetization of those patents is contemplated by the debtors' outstanding financing agreements and, as the debtors explained in their first day declaration, is critical to the debtors' successful reorganization. If the debtors can obtain a fair price for the digital capture portfolio, they could repay the debtor-in-possession financing and take a substantial step toward emerging from Chapter 11," the motion states.

Patent infringement claimed

Kodak calls Apple "the single largest infringer of the digital capture portfolio" and given its patent war with other smart phone and tablet manufacturers, Apple also is a potential purchaser of the Kodak patents, the motion states.

The 10 patents are registered in Kodak's name and have been licensed by Kodak, the court documents show.

"Since 2001, Kodak has generated more than $3 billion in revenue from licensing the patents in the digital capture portfolio to 37 sophisticated parties in arm's length transactions," the documents state.

Apple has refused to pay Kodak royalties for the patents that "have been an important element of the success of Apple's hugely popular iPhone, iPad and iPod Touch products," the motion states.

Kodak claims Apple owes more than $1 billion in damages for patent infringment.

FlashPoint, a company spun off from Apple in 1996, has asserted ownership of at least one of the patents during the Kodak bankruptcy proceedings.

"Despite repeated requests from the debtors, FlashPoint has declined to provide any evidence to substantiate its ownership claim," the Kodak motion states.

A hearing on Kodak's request is scheduled for 11 a.m. ET on June 14.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19. Its Chapter 11 case number is 12-10202.

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