Apple asks bankruptcy court to prevent Kodak from using disputed patent as collateral for loan

Apple asks bankruptcy court to prevent Kodak from using disputed patent as collateral for loan
Seeking $950 million in post-bankrutcy loans, Kodak is planning on using some patents as collateral for the facility. The only problem is that Apple believes that the patents belong to them and is asking the bankruptcy court to block the photography firm from using the patents to obtain the loan. In a filing in the US Bankruptcy Court in the Southern District of New York, Apple states that Kodak is trying to "enter into a $950 million postpetition financing facility secured by security interests in and liens upon substantially all of Kodak’s assets, including certain patents that are subject to ongoing patent ownership and patent infringement disputes between Kodak and Apple."

Apple claims in the filing that the patents it owns are a result of a partnership it had with Kodak in the early 1990's when the pair was "pioneering work on digital cameras and imaging technology and related hardware, software, and user and communication interfaces," and adds that, "through this collaboration, Apple disclosed the architecture for its confidential digital technology to Kodak subject to various non-disclosure agreements, which also provided that any improvements Kodak made to Apple’s disclosures remain the property of Apple."

Apple and Kodak joined together to offer the $749 QuickTake 100 camera in 1994, which Time Magazine called the first digital camera and one of the top "100 greatest and most influential gadgets from 1923 to the present." Apple later dropped Kodak to team up with Japan's Fuji. Eventually, the product line was scrapped after the return of Steve Jobs to the company, in order to reduce Apple's product line. in 2010, Apple discovered that Kodak was claiming ownership of the patents involved in the partnership and took Kodak to court. Apple says that Kodak's '216 patent made "improper claim to ownership of Apple’s technology."

Kodak recently announced that it was suing Apple along with RIM, HTC, Fujifilm, and Samsung relating to its '218 patent. The patent covers "a digital camera capable of capturing an image while previewing the scene to be captured on an LCD screen." Kodak is centering its legal action around that patent which so far has allegedly brought the company $3 billion in licensing fees. For its part, RIM has made a statement in reaction to Kodak's suit. The Canadian company said, "RIM is ready and willing to proceed to trial today but Kodak asked the court to delay the trial until August.  Moreover, RIM is willing to pay for its use of valid patents–RIM pays hundreds of millions of dollars annually for patent licenses. But RIM believes that Kodak’s main patent in this dispute, the ’218, is neither valid nor infringed and RIM’s position was supported by one of the nation’s most respected patent judges, the International Trade Commission’s Chief Judge Luckern."

It looks like more work for the lawyers as the legal soap operas in the industry continue. You can check out Apple's filing as a PDF file by clicking on this link.

source: AppleInsider, BerryReview

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19 Comments

1. audiblenarcotic

Posts: 114; Member since: Nov 16, 2011

Seriously can't go a single day without another article about how Apple is suing someone over patents. Based on the article here though it seems like this one might actually hold merit though since it was through a partnership. The thing is though... Kodak is having enough problems. Why kick them while they are down.

2. Astreo

Posts: 105; Member since: May 05, 2011

The article isnt informing us that they are suing kodak,just that they asked that the loan company not accept the patent in question as collateral as obviosly there is an ongoing lawsuit going on over it.

3. audiblenarcotic

Posts: 114; Member since: Nov 16, 2011

You're splitting hairs. What's the point.

4. christianqwerty

Posts: 467; Member since: May 05, 2011

Did you actually read the article???? It says, Apple is asking the bankruptcy court to block Kodak from using the patents to obtain the loan. KODAK is suing Apple, RIM, HTC, Fujifilm, and Samsung.

5. Muhannad

Posts: 455; Member since: Sep 20, 2011

Basically, Apple is trying to say that they can sue companies for patent infringement but other companies can't do the same to them.

8. E.N.

Posts: 2610; Member since: Jan 25, 2009

Wow, Android fanboys can be so stupid. That's not what's happening at all. Read the freaking article. I bet whenever you guys read "Apple" and "suit"/"patent" in the same sentence, you guys just jump to the comments section just to complain and be a dedicated fanboy.

13. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

The E.N.D?

15. Lucas777

Posts: 2137; Member since: Jan 06, 2011

so true

6. bbblader

Posts: 590; Member since: Oct 24, 2011

fake news about apple before: apple is awesome real news about apple now: meh apple sues someone again

7. Meth7

Posts: 20; Member since: Dec 13, 2011

Typical, so typical.

9. ivanko34

Posts: 617; Member since: Sep 04, 2011

apple "asks" the court ??? but apple is the king of the world ! apple should ORDER the court (as they do in germany)

10. rex1213

Posts: 77; Member since: Jul 29, 2011

Troll. :P

11. vijaysivakula

Posts: 229; Member since: Aug 17, 2011

Which part of this "in 2010, Apple discovered that Kodak was claiming ownership of the patents involved in the partnership and took Kodak to court." did you guys not understand? Apple has sued Kodak. Go back to school ifans.

12. Bluesky02

Posts: 1439; Member since: Dec 05, 2011

Microsoft/Nokia must buy Kodak and make partnership with RIM. Then use whatever those camera and telecommunication patents they have on there next Windows Phone.

14. silver0681

Posts: 19; Member since: Sep 07, 2011

Wow not sure how anyone can read that Kodak is suing apple htc and rim the post a comment that Apple is suing anyone and not be embarrassed with themselves for being illiterate I don't know. Further more all apple is doing is something anyone normal person would do which is ask that another company doesn't get a loan using property that doesn't fully belong to them as collateral. If people would take time to read rather then skim and assume then we would have far less trolls.

16. plgladio

Posts: 314; Member since: Dec 05, 2011

Google bought Motorola, Sony bought Ericsson shares, Microsoft bought Skype, RIM, Nokia were not in good hands now, Samsung and Apple are in good profit, these two can buy if they don't want to let a history making company down. No one want a big company like Kodak to down, already they are sufferring a lot, atleast they can raise some money from Patents as collateral, but Apple is not allowing that. Show some little respect on them APPLE.

17. solidsnakeduds013

Posts: 221; Member since: Oct 20, 2010

OH YEAH SUE THEM ALL! come on apple its not funny anymore. you guys are getting out of hand. I guess this is what you do when you have so much money with a successful company

18. remixfa

Posts: 14605; Member since: Dec 19, 2008

I'm assuming that Apple lost the legal claim against Kodak back in 2010 when they sued kodak over that patent case, otherwise Kodak wouldnt be using that exact same patent to sue Apple for infringement. If that is the case, then what exact merrit does Apple have to lawyer up again and ask for their demands to be met against Kodak's use of the patent now? Kodak wants to use the patent as collateral for loan money. How does that affect apple? Does that mean another company can basically claim rights to the patent until the loan is paid off? If thats true, then can that company use the same patent to re-sue everyone and milk the industry for more money? If thats the case, i can see why apple might be upset, but too bad. If its not their patent, they cant demand how it gets used.

19. RamyAbdelbadea

Posts: 17; Member since: Nov 07, 2011

apple !! you sue people but they can't sue you ?? !!! whatever they are in need for money or not you don't have the right to stop them ,, as NO One Stoped you from suing all the companies and people you want to sue !!!! and what about the new notification bar you steal from android ?? really !!!!

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