Kodak, iPhone, BlackBerry patent spat sparks investigation

ROCHESTER, New York - A federal agency that oversees trade disputes will investigate Eastman Kodak`s patent-infringement complaint over digital-camera technology used in iPhones and BlackBerrys.

The US International Trade Commission in Washington said it will decide whether to block imports of the smart phones after Kodak alleged Apple's iPhone and Research in Motion's camera-enabled BlackBerry models infringe on a 2001 patent covering ways to preview digital images.

Patent cases can take years to resolve, and agreements over licensing and royalty payments often emerge. But the trade commission, which can order Customs to stop imports of products made with contested technology, is seen as a fast-track mediator that typically resolves disputes in 12 to 15 months.

In December, after a yearlong legal tussle, Kodak negotiated royalty paying deals with South Korea's Samsung Electronics and LG Electronics. It followed up in mid-January by suing Apple and Research in Motion after failing to negotiate patent-royalty deals with the two companies.

RIM and Apple officials declined to comment.

Among the smart phones in Kodak's complaint are touch-screen models like the BlackBerry Storm that Canada-based Research in Motion introduced to compete with the iPhone, Apple's hottest gadget.

Kodak also has filed separate lawsuits against Apple in US District Court in Rochester, claiming an infringement of patents related to digital cameras and certain computer processes. It is asking for unspecified monetary damages and a court order to end the disputed practices.

In 2009, Kodak booked $622 million in intellectual-property income. It will draw $450 million in payments from Samsung alone this year, possibly in the first quarter.

The picture-taking pioneer, based in Rochester, has amassed more than 1,000 digital-imaging patents, and almost all of today's digital cameras rely on that technology. It has licensed digital-imaging technology to about 30 companies, including mobile-device makers such as Motorola and Nokia.


- AP