Kodak, Sun Microsystems settle a high-stakes lawsuit over Java

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Kodak, Sun Microsystems settle a high-stakes lawsuit over Java

Business Times
9 Oct 2004

ROCHESTER, New York - Eastman Kodak Co accepted a US$92 million (S$155 million) payout by Sun Microsystems to settle a US$1 billion patent-infringement lawsuit over the Silicon Valley company's Java programming language.

A federal jury in Kodak's hometown decided last Friday, after a three-week trial, that Java infringes on patents Kodak acquired when it bought Wang Laboratories's imaging software business for US$260 million in 1997.

The night before the trial's damages phase, which was to begin on Thursday, the companies ended their two-year-old battle in an out-of-court settlement.

Without admitting or denying the allegations, Sun Microsystems said it will pay Kodak US$92 million to settle all claims in the dispute. In exchange, Sun said it receives a license for Java under all Kodak patents.

'The settlement assures customers worldwide that Sun will stand behind its products and intellectual property, and eliminates any uncertainty that could result from a protracted lawsuit and appeal,' the Santa Clara, California-based company said.

'We are eager to put this punitive litigation behind us,' added its president, Jonathan Schwartz.