Today, Eastman Kodak Co. and Sony Corp. took of their boxing gloves and decided to shake hands over an ongoing dispute covering patents which date back to 1987. As a result of the settlement, a new cross-licensing agreement has been established between the two companies.

The dispute all started in 2004 when Kodak filed a lawsuit against Sony alleging infringement on 10 patents dated between 1987 and 2003. Sony responded by filing a suit of its own, citing Kodak's infringement on 10 patents.  All patents in question relate to digital camera technologies.

The cross-licensing agreement gives Sony Ericsson Mobile Communications A-B access to Kodak technology and vice versa.  The agreement licensing is royalty-bearing for Kodak.

"We are pleased to have reached a mutually beneficial arrangement that advances the interests of the three companies," said Laura Quatela of Eastman Kodak Company. "These cross-license agreements give us broad access to the technology of Sony and Sony Ericsson, and validate the strength of Kodak’s intellectual property portfolio."

Kodak is the number one digital camera seller in the United States followed by Canon and Sony.  Sony recently became a Digital SLR powerhouse after its takeover of the Konica-Minolta's camera division.