Kodak Loses Patent Case Against Apple, RIM
Eastman Kodak Co. has lost a patent case against Apple Inc. and Research In Motion Ltd., dealing a blow to the onetime film giant's efforts to raise billions of dollars by selling off its intellectual property. — Kodak filed a complaint …
Context & Ripple Effects
Kodak began the dispute with infringement claims against Apple and RIM in 2010, then saw its royalty push derailed before winning an interim round in 2011. The company had put as much as $1 billion at stake in the case.
A June 2012 ruling against Kodak had already weakened the litigation path. The latest loss matters because Kodak is trying to turn its intellectual property into sale proceeds, rather than merely collect operating royalties.
First-order effects
- Kodak loses a key route to royalties from Apple and RIM, weakening the expected value of intellectual property it hopes to sell.
- Apple and RIM avoid liability in this case, removing a potential patent-payment burden for both handset makers.
Second-order effects
- Potential buyers of Kodak's patent assets gain another adverse ruling to weigh, likely making the portfolio's litigation-backed value harder for Kodak to establish.
- RIM receives legal relief while its smartphone share is ebbing and BlackBerry 10 delays are frustrating developers, so the decision removes a cost risk without addressing its product transition.
Third-order effects
- For distressed technology companies, patent portfolios are becoming less bankable as turnaround assets when their value depends on contested infringement claims rather than completed licenses.
- The case reinforces a patent-market divide: operating companies can use litigation to defend products, while sellers seeking liquidity need rulings that make future royalty claims credible.
The trend: Patent portfolios are increasingly treated as financial assets whose sale value turns on the enforceability of the underlying claims, not just the number of patents held.