Kodak Chief Expected Polaroid Suit and Victory

Eastman Kodak Co. Chairman Colby Chandler testified today that he knew that getting involved in instant photography could mean a lawsuit from competitor Polaroid Corp., but he said he was convinced his company would win.

Chandler testified in a U.S. District Court trial that will determine how much Kodak owes Polaroid for infringing on patents for instant-developing film.

Asked if he had felt there was a chance that Kodak’s introduction of an instant camera in the mid-1970s could provoke a suit from Polaroid, Chandler answered, “Yes.”

But, he said, “I felt we had reduced the risk to such a low level it was not a major consideration.”

A federal court judge earlier ruled that Kodak infringed on the patents of Polaroid, the pioneer of instant photography.

Polaroid is seeking $12 billion, which would be a record award in a patent-infringement suit, while the Rochester, N.Y.-based Kodak has argued it should pay $177 million, an amount equal to a royalty of 5% on the cameras and film it sold from 1976 to 1985.

Chandler testified that Kodak’s corporate policies clearly state, “We will not knowingly violate or infringe” another firm’s patents.

Asked if he had reason to believe that policy was violated by Kodak, Chandler said, “No, I did not.”