By Gillian Wee and Masaki Kondo
Jan. 4 (Bloomberg) -- Sony Corp., the world's second-largest maker of consumer electronics, said a settlement with Eastman Kodak Co. on some camera and kiosk patent lawsuits will have ``little'' effect on its earnings forecast.
Kodak, the world's third-largest digital camera maker, will get royalties, and the companies agreed to share technology, according to a statement yesterday. No other details were given. Shares of Tokyo-based Sony gained 2.4 percent as of 9:42 a.m. in Tokyo in the first trading day of the year.
The settlements resolve lawsuits dating to March 2004, when Rochester, New York-based Kodak sued Sony for violating its digital camera patents, Kodak spokesman David Lanzillo said. Sony countersued, alleging infringement of a variety of patents, and Kodak filed a counterclaim, he said.
``The companies agreed to conclude the patent litigation and separately signed a broad cross-license agreement,'' Lanzillo said in an interview.
Terms of the licensing deal with Sony, the second-largest digital camera maker, and a similar agreement with Sony Ericsson Mobile Communications AB weren't disclosed in company statements yesterday. Kodak said it will get royalties, without elaborating.
Kodak is the biggest U.S. seller of digital cameras, docks, printers, retail kiosks and online services and ranks third worldwide in camera sales behind Canon Inc. and Sony, according to Framingham, Massachusetts-based researcher IDC.
The Nikkei 225 Stock Average gained 0.6 percent today. Shares of Kodak rose 0.4 percent to $25.91 in New York Stock Exchange composite trading and gained 10 percent last year.
Settlement
Kodak accused Sony's electronics unit of using its patented technology for digital cameras without permission. The lawsuit, filed in federal court in Rochester, claimed Sony infringed 10 patents issued between 1987 and 2003, including ones for image compression and storage. It targeted a range of digital still and video cameras.
Sony filed two suits in U.S. District Court in New Jersey, one of which was consolidated with Kodak's suit in New York.
No money was paid under the settlement agreements, Kodak said in a filing yesterday.
``We are glad that our two companies were able to reach a settlement under reasonable conditions,'' said Mack Araki, a New York-based spokesman for Sony.
Kodak also agreed to dismiss patent infringement claims against Sony Ericsson, the world's fourth-largest cell phone maker, which was also a defendant in a suit against Sony. London- based Sony Ericsson is jointly owned by Sweden's Ericsson AB and Sony. A voice message seeking comment from Sony Ericsson wasn't returned.
Kodak, which popularized film cameras, licenses the patents to camera makers, such as Olympus Corp. and Sanyo Electric Co.
To contact the reporters on this story: Gillian Wee in New York at gwee3@bloomberg.net; Masaki Kondo in Tokyo at mkondo3@bloomberg.net
Last Updated: January 3, 2007 19:46 EST
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