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Daily Update for June 15, 2012
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Kodak loses ruling in patent fight with Apple
Struggling camera and film pioneer Kodak is going through Chapter 11 bankruptcy. While it deals with angry creditors, the company is also juggling a legal battle with Apple over the rights to several patents in its patent portfolio. According to Bloomberg, Kodak recently was handed a setback in its fight with Apple when US Bankruptcy Judge Allan Gropper told the camera maker the dispute would be processed as part of the bankruptcy proceedings and won't be fast tracked by the court. "An adversary proceeding will permit the parties to raise issues in an orderly and expeditious fashion and preserve all of their just rights," Gropper said in a hearing on Wednesday. The dispute involves imaging patents that Apple says it should own. The patents, Apple claims, are derived from technology it shared with Kodak when it worked with the camera company on the QuickTake 100, an early digital camera Apple sold in 1994. Apple says Kodak misappropriated this technology and patented it without Apple's consent. Kodak, however, claims it owns the patents and want to sell them to raise money for its bankruptcy proceedings.
Kodak can't dismiss Apple's claims on patents, gets clearance to sell those patents regardless
Apple might have been denied a lawsuit against Kodak while the former camera maker is in bankruptcy, but that hasn't kept it from winning in court. A Manhattan judge has tossed a Kodak attempt to dismiss Apple's claims that it, not Kodak, owns 10 of those patents through collaborative work back in the QuickTake days. The ruling explicitly clears Kodak to sell the patents to the highest bidder and gives it a quicker path to recovery. However, the compromise also sends a warning to any potential buyers that Apple might have a stake in patents that change hands -- a decision that will either push Kodak to set some money aside or risk sticking a potential buyer with the bill. While who owns what is still up for debate, Kodak likely isn't eager to have another Sword of Damocles over its head that risks scaring away much-needed patent buyers. [Image credit: Pittaya Sroilong, Flickr]
Kodak plans to sell off digital imaging patents
Kodak has filed proceedings to enable the bankrupt company to sell off its digital imaging patents. With a looming June 30th deadline in its lending agreement, the fallen camera maker is petitioning the court to approve a closed bids auction at a hearing on July 2nd. The company has broken the haul into two portfolios, one surrounding digital camera technology and the other concerning image analysis, manipulation and tagging. It's been pitching the pair around to various interested parties for the past year, with 20 companies reportedly registering an interest. If all is approved, the auction will be held in early August, with the winning bidder to be informed on the 13th of the month. The only question now is to wonder which industry values the portfolio more: the camera guys, or the cellphone guys. [Image Credit: MercerFilm]
Switched On: Cisco's hard-luck hardware
Each week Ross Rubin contributes Switched On, a column about consumer technology. When you think about companies that dominate specific technology markets, alongside names such as Apple, Microsoft, Facebook, Google, Intel. SAP and Oracle, you would no doubt include Cisco Systems. Founded in 1984, the networking giant, which has grown largely via acquisition over the years, earned $43 billion of revenue in 2011. That placed it at #64 on the 2011 Fortune 500. Cisco has a current market value of about $113 billion. Linksys, acquired in 2003, has remained among the top-selling home networking brands, and Cisco recently moved to bolster its TV service provider business -- formerly known as Scientific Atlanta -- with the acquisition of NDS. But for all the success that Cisco has had building connections among network endpoints, the company has had a tough road when it's come to selling end-user devices directly to end-users over the last few years.
ITC rules against Kodak, in favor of RIM and Apple
This is strike two against Kodak at the US International Trade Commission. CNET is reporting today that administrative Judge Thomas Pender reaffirmed a decision from last year which stated that neither Apple or RIM were infringing Kodak patents. "I hereby reaffirm on remand that no violation of Section 337 of the Tariff Act of 1930, as amended, has been found in the importation into the United States, the sale for importation, or the sale within the United States after importation of certain mobile telephones and wireless communication devices featuring digital cameras, and components thereof, in connection with claim 15 of U.S. Patent No. 6,292,218." The judge noted that Apple and RIM were actually both infringing on a patent held by Kodak, but the claim was invalid because the technology Kodak claims was protected was "obvious". Kodak brought the action in 2010, claiming that both Apple and RIM image preview functions were infringing on Kodak intellectual property. The ruling needs to be approved by the full ITC panel. Kodak filed for Chapter 11 bankruptcy protection in January, and has been active in trying to sell off its patents in hopes of raising some money. Apple fans will note that back in 1994, Apple and Kodak were partners in the production of the first consumer digital camera, the Apple QuickTake 100. Time Magazine noted that the camera was 'the first consumer digital camera' and ranked it among its '100 greatest and most influential gadgets from 1923 to the present'.
ITC says again that Apple and RIM don't violate Kodak patent
Kodak hasn't caught a break lately, and that trend isn't easing up any time soon with a second rejection arriving in its main International Trade Commission (ITC) patent dispute with Apple and RIM. Despite having had its case remanded after a loss last year, Kodak is once more being told that BlackBerrys and iPhones don't violate a patent on previewing photos. The one violation was rendered moot through "obviousness," according to administrative law judge Thomas Pender. It's still an initial ruling, and Kodak is trying to put a positive light on the situation -- it's "pleased" there's still an infringement, even if the patent claim is invalid -- but the patent wars aren't looking good for a photography company that has already had to give up cameras to have a chance of staying afloat. Most of Kodak's hope, then, will be pinned on a second wave of ITC disputes that might stand a better chance of putting at least Apple's feet to the fire.
Kodak accuses Apple of interfering with patent sale
Things are getting heated in Kodak's patent battle with Apple. In a recent court filing noticed by Total Telecom, Kodak accused the Cupertino company of trying to interfere in its upcoming patent auction in order to avoid paying US$1 billion in penalties and royalty fees. According to the court document, Kodak says Apple shouldn't be allowed to claim ownership of a key Kodak imaging patent that describes a method of previewing a photo on an LCD. Kodak argues that the International Trade Commission and a US District Court have denied Apple's ownership claims. Apple, however, continues to assert that Kodak misappropriated its technology to get the patent. If Apple's ownership is upheld, then the company would not have to pay royalties or any infringement penalties to Kodak. It would also prevent Kodak from paying off its creditors by selling this valuable patent in an auction. Kodak asked the bankruptcy judge to consider this matter during a hearing scheduled for June 14. This would give the court a few weeks to make a decision before Kodak must file its patent auction rules and timeline with the bankruptcy court. Needless to say, Kodak's patent auction would go smoother if there wasn't an Apple ownership claim on one of the company's most important patents.
UnEasyshare: Kodak's now-defunct, Rochester-based nuclear reactor
Ready for this unsettling Kodak moment? It seems the one-time imaging powerhouse held a decades-long secret deep in a bunker below Building 82 on its Rochester campus. The now vacant facility, a concrete-shielded chamber built in 1974, was once home to a californium neutron flux multiplier (CFX) or, in layman's terms, a small nuclear reactor as recently as six years ago. Certainly, that's not the technology one would normally associate with an outfit built on the foundations of photography, but according to recently released documents, its three and a half pound store of enriched uranium was used primarily for neutron radiography -- an imaging technique -- and chemical purity testing. The site's long been shut down and the radioactive material in question carted off with federal oversight, but for denizens of that upstate New York territory, alarming news of the reactor's existence has only just surfaced. Before you cast Kodak the evil side eye, bear in mind post-9/11 policies forbade the company from making the whereabouts of its small reactor widely known, though earlier scientific studies did make reference to the CFX's existence. It's an eye-opening glimpse into the esoteric machinations of private industry and the deadly dangers that lurk below your feet.
Nokia gets it: launches patent lawsuits against HTC, RIM and Viewsonic
Nokia has just announced that it is commencing patent litigation against HTC, Research in Motion and Viewsonic in the US and Germany. It's claiming that a number of its patents are being infringed and has registered complaints with the ITC and courts in Delaware, Dusseldorf, Munich and Mannheim. Espoo's legal chief Louise Pentland has said that while the company currently licenses its FRAND patents to "more than 40 companies," it had no choice but to lay some courtroom smack-down on the named offenders. It appears that after losing its global market share crown and billion-dollar losses, the company is finally going on the offensive with its deep patent portfolio. You can judge that for yourself when you read the official line after the break. Update: We've received some clarification from Nokia on what exactly is on the docket here. "Four of the patents asserted against Viewsonic in Mannheim are standards essential. The rest against Viewsonic and all against HTC and RIM are implementation patents, not declared essential to any standard and so we have no obligation to grant licenses."
Kodak Gallery iOS app: now with 100 percent more physical printing at Target / CVS
It's not quite as earth-shattering as Zuck's deal to snap up Instagram, but one of the pioneers of photography is making waves any way it can. Kodak Gallery has been available on the App Store since November of last year, but starting this week, users will be able to order photos right on their iPhone for pickup at participating Target and CVS locations in America. Kodak claims that the time between order and pickup is usually around an hour, with all prints (available in 4x6, 5x7 and 8x10 sizes) arriving on Kodak photo-quality paper. Pricing, as you'd expect, will vary by store, and more deets can be spotted in the release after the break.
Apple denied request to continue litigation against bankrupt Kodak
U.S. Bankruptcy Judge Allan Gropper said Thursday that Apple cannot pursue litigation against Kodak while the camera company is still in bankruptcy, says a Reuters report. The judge said it would be an "inappropriate way forward" to let Apple pursue current court cases or file new ones at this time. Last month, Apple asked the court to lift the stay that stopped a heated court case between the two companies over digital photography patents Kodak owns. This case was put on hold when Kodak filed for bankruptcy. As part of the bankruptcy process, Kodak wants to sell off its patent portfolio which includes the patent at the heart of this case. Apple, however, wants to stop Kodak from selling the patent and threatened to file new litigation until a decision is made on this patent dispute. Now that litigation is no longer an option, Kodak and Apple must go back to the drawing board and resolve this patent dispute in a way that does not interfere with Kodak's bankruptcy case.
Judge says Apple can't pursue patent infringement case against Kodak
Apple was dealt a setback today in its efforts to prevent Kodak from selling up to $2.6 billion worth of digital imaging patents, with U.S. Bankruptcy Judge Allan Gropper ruling that it would be an "inappropriate way forward" to allow Apple to pursue patent litigation against the bankrupt company. For its part, Apple had argued that one of those patents -- concerning the ability to preview digital photos on an LCD screen -- was "misappropriated" from its own technology, and that Kodak therefore shouldn't be allowed to sell it off as part of the planned sale (something Kodak obviously disputes). On that point, the judge did agree that the matter should be resolved soon, just not in the manner in which Apple had been proceeding, further adding that he "would request that the parties report to me on their efforts to come up with a procedure that truly works."
Kodak asks bankruptcy court to decide on patent dispute with Apple
Kodak is asking the bankruptcy court to make a decision about an imaging patent that's part of a lawsuit with Apple, says a report in Computerworld. The disputed patent is owned by Kodak and describes a camera that takes high quality stills and lets the user review these images on an LCD. Kodak and Apple have been fighting the case in the Western District Court of New York, but the proceedings stalled after Kodak filed for bankruptcy. Apple recently asked the court to remove this bankruptcy stay and transfer the case to the U.S. District Court for the Southern District of New York. Kodak, however, is in the process of selling off its assets, including the patent in this lawsuit. Apple claims Kodak should not be allowed to sell its patent portfolio until this dispute has been resolved. If Kodak can convince the Bankruptcy Court to make a decision on the patent, it can sidestep the lawsuit with Apple and sell its patent portfolio to the highest bidder. Though it doesn't have a buyer for its portfolio, online photo company Shutterfly has agreed to pay US$23.8 million for Kodak's online photo services business.
Kodak moves to block Apple's latest patent suit from proceeding in federal district court
In a move that's sure to surprise no one, Kodak is fighting Apple's latest round of patent litigation -- a suit that would force Kodak to pause plans to sell up to $2.6 billion in digital imaging patents as a condition of its bankruptcy loan. In documents filed late last week, Kodak argued the dispute should be heard by the same bankruptcy court that's already overseeing its insolvency proceedings. In fact, Kodak's bankruptcy filing back in January caused all pending litigation (from Apple and RIM, among others) to come to a screeching halt, but Apple is nonetheless pushing for a reboot, arguing it's the owner of "a number of valuable patents," including one that could be lost if that planned $2 billion sale goes through. So where might this legal catfight take place? A bankruptcy judge is expected to hear arguments from both sides on Thursday.
Kodak agrees to sell Gallery online photo service to Shutterfly for $24 million
Remember that Kodak Photo Gallery online picture service that we didn't use? It appears that years of shipping packed-in with the company's cameras have netted it some 75 million users, making it an asset that now-bankrupt Kodak has agreed to sell off to Shutterfly for $23.8 million. The deal isn't quite done yet, with Shutterfly's offer entered as a stalking horse bid while other buyers may also submit proposals before the process is targeted to close in the spring. This is all a part of Kodak's pivot away from digital cameras and related products as it focuses on enterprise services and desktop printers instead. Under the current agreement, current gallery customers uncomfortable with being shipped off to Shutterfly will be able to opt out and either download their stored pics or buy them on DVDs. Otherwise, their accounts will be transferred in a way that is "preserved, and protected" -- that is to say, almost entirely unlike the way they're handled on iOS and Android.
Kodak gets court approval to borrow $950 million, end theater sponsorship
Kodak took another step along the road to recovery yesterday, after receiving court approval to borrow $950 million in restructuring funds. Nearly a month after the camera maker filed for Chapter 11 bankruptcy, US Bankruptcy Judge Allen Gropper granted Kodak's request on Thursday, allowing the company to continue operations during its ongoing transition. Gropper's decision, handed down in a Manhattan court, follows a series of negotiations between Kodak and its lenders, and adds an extra $300 million to the $650 million awarded during January's Chapter 11 filing. The company is also allowed to end its sponsorship of the Kodak Theatre in Los Angeles, after successfully arguing that doing so would be in the best interest of Kodak and its creditors. Under the deal, Kodak is obliged to pay $72 million over the course of 20 years. It currently shells out $3.6 million per year and still has $38 million in outstanding payments, but Kodak's lawyers argued that the agreement was too costly. Kodak Chairman and CEO Antonio Perez issued the following statement in response to yesterday's decision: "Today's agreement is another step towards ensuring that Kodak is positioned to execute on the goals the Company set out last month: Bolster our liquidity in the U.S. and abroad, monetize our non-strategic intellectual property, fairly resolve legacy liabilities, and enable Kodak to focus on its most valuable business lines."
Daily Update for February 15, 2012
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen.
Apple to pursue legal action against bankrupt Kodak
Bankrupt Kodak has been upfront about its strategy to generate revenue from its robust patent portfolio through litigation. In the past year, Kodak has sued Apple, HTC, RIM, Samsung, and Fujifilm using various imaging recording and processing patents. Apple isn't taking this lying down and, as Bloomberg reported, Apple has asked a bankruptcy judge to allow it to sue Kodak over a patent infringement claim. Apple contends Kodak is infringing on patents that cover technology used in printers, digital cameras and digital picture frames. Apple revealed in its US Bankruptcy Court request that it intends to file an infringement complaint with the ITC and a lawsuit in the US District Court. Apple argues that bankruptcy doesn't protect a company from a patent infringement lawsuit. Kodak can ask the court to suspend the District Court case until the ITC makes a decision on the infringement, but Apple said it will go ahead with the case in the meantime.
Apple wants to file patent lawsuit against Kodak, fully aware that Kodak's bankrupt
Poor Kodak just can't catch a break these days. Nearly a month after filing for Chapter 11 bankruptcy and mere days after shuttering its digital camera business, the sputtering company now finds itself the target of no less a behemoth than Apple. Yesterday, Cupertino's legal team asked a US Bankruptcy Court for permission to go after Kodak on two legal fronts: with a patent infringement lawsuit in a Manhattan district court, and a corollary complaint in the ITC. According to Bloomberg, Apple's patent suit focuses on technologies that Kodak uses in its line of digital cameras, printers and digital picture frames. Unfortunately for Kodak, printers are one of the product areas it recently decided to focus on, as confirmed in last week's restructuring announcement. Salt, meet wound.These two companies, of course, have been involved in an ongoing ITC battle over Kodak's image transfer technology, with the latest salvo coming last month, when the camera company launched a fresh batch of litigation against both Apple and HTC. If the bankruptcy court grants Apple's request, the company will head straight to court, in the hopes of obtaining a block against Kodak's allegedly infringing products. Kodak, meanwhile, could file a request to hold off the district level case until the ITC ruling comes through, though Apple said yesterday that it would press forward, regardless. The company was also quick to point out that it's not legally bound to request permission to sue a court-protected bankrupt company, but did so "out of an abundance of caution," which is really considerate, if you think about it.
