Eastman Kodak shares jump 16 percent on patent case

NEW YORK, March 28 (Reuters) – Shares of Eastman Kodak Co
(EK.N: Quote, Profile, Research) soared 16 percent in premarket trading after a trade
panel in the United States last week agreed to review a case
that could lead to the struggling photography company receiving
hundreds of millions of dollars in royalties. [ID:nN25292900]

Shares soared to $3.96 on the New York Stock Exchange in
premarket trading on Monday.

Kodak is asking the International Trade Commission to bar
the importation of Apple Inc (AAPL.O: Quote, Profile, Research) and Research in Motion
(RIM.TO: Quote, Profile, Research) mobile phones and other wireless devices with digital
cameras. A final decision is expected in May.

Kodak settled similar patent disputes with LG and Samsung
in 2009 and 2010. The two South Korean consumer electronics
makers agreed to pay Kodak $400 million and $550 million,
respectively, to license its technology.

Kodak’s Chief Executive, Antonio Perez, has suggested that
the company could reap $1 billion from a favorable ruling. But
Brean Murray Carret & Co analyst Ananda Baruah said in a
research note on Monday the amount could be lower than previous
settlements because Apple and RIM ship lower volumes of devices
than the previous two companies that paid Kodak, Samsung and
LG.

Many investors see Kodak’s value in its lucrative portfolio
of intellectual property. It has more than 1,000 patents in its
trove, and in 2010 it made an estimated $630 million from its
licenses, according to Argus Research.

But Kodak’s reliance on one-time intellectual property
licensing deals is not sustainable, analysts have said.
(Reporting by Liana B. Baker, editing by Dave Zimmerman)

Eastman Kodak shares jump 16 percent on patent case