Kodak sells online business to Shutterfly, patent sale held up by Apple dispute
The Kodak Gallery service, which allows user to store and share their pictures online and create custom printouts, has more than 75 million users, according to Reuters. But the $23.8 million transaction is a minor deal compared to the $2 billion Kodak's patent sale could fetch.
That sale is scheduled to begin by June 30, but the matter has been complicated because of an ongoing dispute with Apple over one of its patents. Last month, Apple
Next week on March 8, a bankruptcy judge will hear Apple's motion to move forward. The iPhone maker has asked the court to lift an automatic stay that was placed on pending litigation after the company filed for Chapter 11 in January.
Apple has contended that it is the rightful owner of one of the patents Kodak is looking to sell. The dispute stems from a partnership between Apple and Kodak in the early 1990s, in which Apple says it disclosed "confidential digital camera technology to Kodak subject to various non-disclosure agreements." The terms of the agreement stated that "any improvements Kodak made to Apple's disclosures remain the property of Apple."
Apple released the $749 QuickTake 100 camera, which has been called the first consumer digital camera. The company also released the QuickTake 200 in 1997 before exiting the digital camera market following the return of co-founder Steve Jobs to the company.
In filings with the court, Apple has asserted that it "became aware in 2010 that Kodak had misappropriated Apple's technology and sought patents of its own claiming this technology. That year Apple "launched an extensive internal investigation into Apple's prior relationship with Kodak relating to the development of digital camera technology."
12 Comments
Guess Kodak hoped no one remembered.....
It sounds like Kodak really screwed the pooch on this one. Apple probably helped them enter the digital camera market and now they are trying to sue them for patent infringement on IP they helped them with. Geez.
As a long-time user of Kodak films before my first digital camera in 2002 (which effectively killed my film use), I am really sad to see that company in such dire straits.
This law suit is akin to a drowning victim grabbing at any swimmer that happens by.
As a long-time user of Kodak films before my first digital camera in 2002 (which effectively killed my film use), I am really sad to see that company in such dire straits.
This law suit is akin to a drowning victim grabbing at any swimmer that happens by.
... but the swimmer they are grabbing is actually an ocean liner and Kodak just grabbed the propeller.
When Apple is accused of violating IP or asserting IP, the anti-Apple crowd likes to act like Apple is some new company on the scene who is going up against companies that have been doing this a lot longer than them. When it comes to computer technology, Apple is one of the original pioneers, and it's pretty safe to conclude that they've been working on technologies, even those not related to their core business, for a long time.
Ironically, it's Google who's the young pup, which makes you wonder how they've become so dominant in areas outside their core search business without violating IP.