Kyocera Corp. (KYO) sued Eastman Kodak Co. (EKDKQ) for
patent-infringement damages as Kodak heads to court to seek
approval of the long-awaited sale of its portfolio of
digital-photography and Web-based photo-application patents.
The complaint in the New York bankruptcy court that is
overseeing Kodak's Chapter 11 case says the alleged infringement
occurred during the bankruptcy, so the claimed damages rank as top
priority claims. According to the suit, Kodak's printers and
digital cameras infringe 15 patents owned by Kyocera.
Kodak spokesman Michael Veronda said Monday the company is
declining to comment on Kyocera's suit. The complaint says Kodak
has denied liability for the alleged infringement.
The case was filed about a week in advance of Friday's scheduled
hearing, during which Kodak will seek approval to move ahead with
the sale of its digital-photography patents to a group of
technology heavyweights for about $525 million.
A day after the infringement suit was filed, Kyocera filed
papers expressing reservations about the patent-portfolio sale,
complaining that protections licensees negotiated last year aren't
in the sale papers Kodak plans to take to court.
Kyocera's sale objection prompted a series of "me-too" filings
from Ricoh Co. (RICOY), Nikon Corp. (NINOY), and units of Oracle
Corp. (ORCL) and Motorola Solutions Inc. (MSI).
The companies that license Kodak patents fear the sale will
"extinguish every right, license and defense" that Kyocera the
other licensees have against Kodak in court fights over patent
rights.
While they don't object to the proposed sale of the Kodak
digital-photo patents, the licensees want the protective language
that they claim was in documents approved last year reinserted in
the new version of the sale papers.
Kodak, of Rochester, N.Y., has been trying to sell the patents
for a year and a half and at one time hoped to get as much as $2.5
billion for them. In December, the company announced a smaller
deal, but one that will provide cash to keep it on track to get out
of bankruptcy.
Intellectual Ventures LLC, the buyer, will license the patents
to a roster of technology heavyweights that includes Apple Inc.
(AAPL), Google Inc. (GOOG), Samsung Electronics Co. (SSNHY),
Microsoft Corp. (MSFT), BlackBerry maker Research In Motion Ltd.
(RIM.T), and others.
Kyocera and other licensees don't want their rights and defenses
stripped away before the patents are put into the hands of the new
owners, court papers say.
(Dow Jones Daily Bankruptcy Review covers news about distressed
companies and those under bankruptcy protection. Go to
http://dbr.dowjones.com)
Write to Peg Brickley at peg.brickley@dowjones.com
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