Kodak Files Lawsuits Agaisnt BlackBerry and iPhone for Image Preview and Digital Camera Process Patent Infringment

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Eastman Kodak Company a has filed
lawsuits against Apple Inc. and Research In Motion Limited (RIM)
alleging the infringement of Kodak digital imaging technology.

The Kodak complaint, filed with the U.S. International Trade
Commission (ITC), specifically claims that Apple's iPhones and RIM's
camera-enabled BlackBerry devices infringe a Kodak patent that covers
technology related to a method for previewing images. Separately, Kodak
filed two suits today against Apple in U.S. District Court for the
Western District of New York that claim the infringement of patents
related to digital cameras and certain computer processes.

Kodak has licensed digital imaging technology to approximately 30
companies, including such leading mobile-device companies as LG,
Motorola, Nokia, Samsung, and Sony Ericsson, all of which are royalty
bearing to Kodak.

On Dec. 17, in an action involving Samsung and Kodak, an ITC
Administrative Law Judge issued a ruling declaring that the Kodak
patent covering color image preview (No. 6,292,218) was valid and
enforceable, and that Samsung's camera-enabled mobile devices infringed
upon that Kodak patent.

In the complaint against Apple and RIM, Kodak is seeking from the
ITC a limited exclusion order preventing the importation of infringing
devices, including certain mobile telephones and wireless communication
devices featuring digital cameras.

"Kodak has a long history of digital imaging innovation and we have
invested hundreds of millions of dollars creating our industry-leading
patent portfolio," said Laura G. Quatela, Chief Intellectual Property
Officer, and Vice President, Eastman Kodak Company. "In the case of
Apple and RIM, we've had discussions for years with both companies in
an attempt to resolve this issue amicably, and we have not been able to
reach a satisfactory agreement. In light of that, we are taking this
action to ensure that we protect the interests of our shareholders and
the existing licensees of our technology.

"Our primary interest is not to disrupt the availability of any
product but to obtain fair compensation for the use of our technology,"
Quatela said. "There's a basic issue of fairness that needs to be
addressed. Those devices use Kodak technology, and we are merely
seeking compensation for the use of our technology in their products."

In the first suit against Apple in U.S. District Court, Kodak
alleges infringement of two patents generally covering image preview
and the processing of images of different resolutions. In the second
suit, Kodak alleges infringement of patents that describe a method by
which a computer program can "ask for help" from another application to
carry out certain computer-oriented functions. The allegations in the
second suit apply to any Apple product that uses the processing method
described above. The patents at issue in the second suit were
previously the subject of litigation between Kodak and Sun Microsystems
Inc., and in that case, a federal jury determined in a 2004 trial that
Sun's Java programming technology had infringed the patents. Kodak
later settled the suit by agreeing to a payment from Sun in return for
a license for the patents at issue.

In both District Court actions against Apple, Kodak is seeking to
permanently enjoin Apple from further infringement as well as
unspecified damages.

"We remain open to negotiating a fair and amicable agreement with
both Apple and RIM, which has always been our preference and our
practice with other licensees," Quatela said. "We seek to avoid
litigation in our licensing programs whenever possible. But when the
infringement is persistent, we will act to defend the interests of our
shareholders and licensees, and to promote the fair compensation that
is the bedrock of innovation."

Kodak has a long history of digital innovation. In 1975, Kodak
invented the digital camera, and in 1976, Kodak invented the Bayer
color filter array, which allows digital cameras to capture images in
color. The company has a portfolio of more than 1,000 digital imaging
patents, and to this day, Kodak continues to bring innovation to the
marketplace. At the most recent Consumer Electronics Show, the KODAK
SLICE Touchscreen Camera won an Innovations 2010 Design and Engineering
Award from the International Consumer Electronics Association. These
awards, sponsored by the CEA and endorsed by the Industrial Designers
Society of America, honor superior design and engineering among the
year's most technologically advanced products.