Tuesday, October 05, 2004

hRevenue by lawsuit

A spokesman for Kodak said on Friday: "Kodak has and continues to make substantial technology investments to ensure high-quality products. We are pleased that the court has validated Kodak's intellectual property rights protecting these valuable innovations."

Sun argued throughout the 3-week trial that Java did not infringe on the Kodak patents and that, even if it did, the patents were invalid. But Kodak won the day.

This week the company will therefore return to the court, in Rochester NY, and press on with its damages claim. In pre-trial documents Eastman Kodak Co lawyers indicated the company would be asking for $1.06 billion in lump-sum royalties - a figure that represents half of Sun's operating profit from the sales of computer servers and storage equipment between January 1998 and June 2001.

Since Sun doesn't charge for Java itself, Kodak's strategy is to go after its hardware revenues. Sun will vigorously defend the damages phase of the trial, it says.

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