Digital camera giants set for patent showdown

Thursday, March 11, 2004 | 9:44 a.m.

Sony Corp., the world's second-biggest maker of consumer electronics, denied infringing Eastman Kodak Co.'s digital camera patents, setting the stage for a court battle with the world's largest photography company.

"Sony has not violated any product patent relating to digital imaging and will vigorously defend any allegations made in this regard," Sony spokesman Kei Sakaguchi said Wednesday.

Kodak filed a lawsuit this week in a federal court in the company's home town of Rochester, N.Y. claiming that some Sony still and video cameras infringe 10 patents issued between 1987 and 2003, including ones for image compression and storage.

The lawsuit comes as increasing competition prompted makers such as Nikon Corp. and Fuji Photo Film Co. to slash sales forecasts. Kodak is battling to overtake Tokyo-based Sony as the biggest vendor in the $4.3 billion U.S. digital camera market.

"Digital cameras are one of Sony's most profitable products but there's a lot of competition out there," said Satoru Oyama, an analyst at Lehman Brothers Japan Inc. in Tokyo. "Sales are rising while profit is being curbed."

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