Kodak Encouraged By ITC Ruling In Apple, RIM Suit

By Tiernan Ray

Despite a sharp drop in shares of Eastman Kodak (EK) tonight following an announcement by the International Trade Commission that it affirmed some aspects of a January rejection of Kodak’s suit against Apple (AAPL) and Research In Motion (RIMM), Kodak tonight said that the ruling was favorable and that it expects more positive developments in pressing its case. An administrative law judge has been told by the Commission to review the January rejection, and has until August 30th to do so.

“We are gratified that the Commission has decided to modify in our favor the judge’s initial recommendation,” Kodak’s general counsel, Laura G. Quatela, said. “As we have said from the start, we remain extremely confident this case will ultimately conclude in Kodak’s favor.”

Regarding the details of the Commission’s announcement, Kodak had the following to say:

In support of Kodak, the Commission modified the following key findings:

Kodak appealed the meaning of the patent term “at least three different colors.” The Commission agreed with Kodak that all of Apple and RIM’s accused phones infringe this term.

Kodak appealed the meaning of the patent terms “motion processor” and “still processor.” The Commission revised the judge’s interpretations and instructed him to make a new recommendation based on the revision. Kodak appealed the meaning of the patent term “initiating capture.” The Commission agreed with Kodak that RIM’s accused phones and certain Apple phones infringe this term. With respect to other Apple phones, the Commission instructed the judge to reconsider his recommendation. Kodak appealed the judge’s invalidity ruling. The Commission sent the issue back to the judge for reconsideration in view of the revised meaning of the patent terms.

The Commission affirmed other determinations favorable to Kodak, including the enforceability of the patent, and the existence of domestic industry.