WASHINGTON, July 1 — Eastman Kodak shares plunged 16 per cent yesterday after a US trade panel upheld portions of a ruling unfavourable to the company in a patent fight over digital camera technology in cellphones.

The US International Trade Commission sent portions of the case back to its internal judge for further review.

In January, the judge had found that Apple and Research in Motion did not infringe Kodak’s patented technology because it was invalid.

The commission said it was affirming in part, reversing in part, and remanding in part the prior decision.

Kodak’s chief executive Antonio Perez had previously suggested the company could reap US$1 billion (RM3 billion) from a favourable ruling.

Kodak filed its ITC complaint against Apple and RIM in January 2010, arguing that Apple’s iPhone and RIM’s camera-enabled Blackberry infringed on a Kodak patent related to a method for previewing images.

It asked the ITC to bar the importation of Apple and RIM mobile phones and other wireless devices with digital cameras.

Apple filed a countersuit at the ITC, accusing Kodak of infringing its patented technology. In an initial ruling, Kodak was found not to have infringed.

The ITC’s notice yesterday gave a brief summary of an opinion to be issued later.

On the issue of capturing a still image while previewing a moving image, the ITC said: “We find that the Apple iPhone 3GS and iPhone 4 do not literally infringe the asserted claim in their non-flash-photography modes of operation.”

But it said the accused products from Apple and RIM did infringe a portion of the technology involving colour patterns.

The ITC set a target date of August 30, 2011, but said the administrative law judge could himself extend the date based on the need for further proceedings.

Shares of Kodak have moved sharply on developments in the case. They rose in March on word the ITC would review the judge’s decision. — Reuters