A lawsuit has been filed by the Eastman Kodak Company against Apple Inc. for causing hindrance in the patent auctions that Kodak planned in order to come out of the financial crises.
“Apple’s strategy has been to use its substantial cash position to delay as long as possible the payment of royalties to Kodak…. Apple and FlashPoint are seeking to benefit from Kodak’s difficult financial position, which will be exacerbated if the debtors cannot obtain fair value for the patents,” the statement from Kodak says, as reported on inquisitr.com.
Apple, however, has previously denied the accusations, calling the step by Kodak as a way to put their financial burden on someone else. Apple claims that the allegation is baseless and this is not going to benefit Kodak as it has flaws in it.
Kodak had been a leading photography business, earning huge profits from its product lines. Since the 1980s, the company has been under financial pressure, according to a report by The Wall Street Journal. The digital technology has taken over the photography market today and changed customer demands. Kodak has not been able to keep up with the changing industry needs.
The patents that Kodak wants to sell in August this year are claimed by Apple as well. These patents are actually related to joint ventures of both the companies, but Kodak claims full ownership.
The patents are related to technology through which digital photos can be viewed on LCD screens when connected to digital cameras.
Patents provide surety to the owner that the technology or the patented item is not going to be infringed and the owner is going to get its full benefit. When there are so many players in the market, it becomes even more important to get proper ownership rights for the technology introduced by a specific company. The lawsuit filed by Kodak is going to get heard in court and decided after getting evidences from both sides. Apple’s lawyer has not commented on the issue yet.