Eastman Kodak Company (NYSE:EK) Shares Surges on Latest ITC Announcement

Eastman Kodak Company (NYSE:EK) shares went up 5.29% yesterday on news that the U.S. International Trade Commission has decided to review an earlier adverse "initial determination" by an ITC judge in EK's patent infringement case against AAPL and RIMM. Last Friday, The Company received word that the full U.S. International Trade Commission (ITC) would review the January 24 th , 2011 initial determination by the Administrative Law Judge, (ALJ) that Kodak's Patent, 6,292,218, in dispute with both Apple (AAPL) and Research in Motion Limited (RIMM), was invalid and not infringed. The ITC will issue its final ruling in this case on May 23, 2011. If the ITC rules that AAPL and RIMM are indeed infringing EK's image manipulation patent, the ITC can enjoin AAPL and RIMM from selling the infringing products in the U.S. market. Typically, this ruling would force AAPL and RIMM to negotiate a settlement with EK which could include monetary compensation or patent cross licenses or some combination of both. The Company has had discussions for years with both Apple and RIMM in an attempt to resolve these issues and has not been able to reach a satisfactory agreement in its opinion.  The Company first filed its complaint with the ITC in January, 2010.  Concurrently, the Company filed two suits against Apple Inc. in the Federal District Court in Rochester, New York, claiming infringement of patents related to digital cameras and certain computer processes. Shares of the company went up by 18 cents or 5.29% and closed at $3.58 with heavy volume of 68.67 million shares traded. The stock has 52 week range of $2.90-$9.08. The market capitalization of the stock stands at $962.60 million with beta of 1.47. Chief Executive Officer Antonio Perez said in the press last week, prior to the Friday ITC announcement, an ultimate ruling in Kodak's favor could add more than $1 billion in revenue from a combined license settlement with AAPL and RIMM. Eastman Kodak Company (Kodak) is engaged in the sale of imaging products, technology, solutions and services to consumers, businesses and professionals. Kodak operates in three segments: Consumer Digital Imaging Group (CDG), Graphic Communications Group (GCG) and Film, Photofinishing and Entertainment Group (FPEG).
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