Kodak filed a lawsuit against Sony on March 8 in the U.S. District Court of New York claiming Sony infringed 10 of its patents covering digital imaging technology such as digital data compression and storage.

Sony immediately denied the alleged patent infringement allegations and countersued in a New Jersey federal court on April 1. It alleged that Kodak infringed its intellectual property covering digital still cameras. Though it was not intended as a countersuit, a Sony spokeswoman said the two companies have entered a legal battle concerning IP for digital imaging.

The digital still camera market is growing rapidly, with world production expected to reach 57 million units this year, according to Nikkei Market Access. The estimate excludes low-priced, low resolution toy cameras without monitor displays. The Camera and Imaging Products Association of Japan projects that shipments from Japan could reach 61 million units.

Japanese companies are the biggest suppliers, and Sony has the largest share of over 20 percent, according to Nikkei Market Access. Sony plans to produce as many as 15 million units in its fiscal year which started April 1.

Kodak meanwhile has been shifting to digital imaging, seeking to become the third largest supplier of digital still cameras by 2006. It claimed the second largest market share last year after Sony in the U.S. in the year-end sales last year, according to a Kodak Japan spokesman.

Kodak holds a broad patent portfolio and signed cross-licensing deals for digital imaging technology with camera makers Sanyo and Olympus in 2001. Kodak had been negotiating with Sony for a few years. However, Sony holds more than 1,700 patents for digital imaging.

"After a few years discussion, we could not find any accord, thus we brought the lawsuit," a Sony spokeswoman said. Sony listed 10 patents covering a range of technologies from electronic shutter and zoom lenses to printing from a camera dock.

By: DocMemory
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