Motorola Signs Deals with Google & Kodak

LAS VEGAS (Dow Jones)-Motorola Inc. and Eastman Kodak unveiled a partnership late Thursday to share their respective technologies and to jointly develop mobile camera phones.

The 10-year agreement, announced during the Consumer Electronic Show, pairs up two technology companies that share a similar history. Both companies had enjoyed a long period of success - Motorola with its once dominant position in the cell phone business and Kodak with its camera film business - and each saw a rapid fallout. The two didn't see a rebound until recently, when Motorola caught the consumers' eye again with its trendy RAZR and Kodak shifted its focus to digital technology.

Under the terms of the partnership, the companies will develop phones that use Kodak sensors and utilize services such as Kodak EasyShare. While financial terms weren't disclosed, Motorola executive Scott Durchslag said Motorola will pay Kodak a royalty for their cross-licensing agreement. He wouldn't provide more details, but added the agreement wasn't exclusive to Motorola.

The first phone is expected at the end of 2006, and will utilize existing technology from both sides. But the next generation of phones will be designed from scratch, and should come out in 2007, said Andy Wilson, director of strategy and business development for Kodak's consumer digital imaging group.

The two companies have been looking at a partnership for years, but serious talks didn't begin until a few months ago.

"This is the most natural partnership," Wilson said. "The industries have been moving towards each other."

Durchslag expects to see four or five megapixel camera phones for the next generation portfolio. Higher end models with higher resolution capabilities will also be available. People will be able to print out their photos at Kodak kiosks or use Kodak printers, likely connected via Bluetooth technology.

Executives on both sides envision phones that can take a picture, which are instantly uploaded as thumbnails to a Kodak managed Web site. The photos can then be enhanced or fixed with Kodak technology.

Wilson said he believes this will rapidly accelerate the use of camera phones, which are simultaneously ubiquitous but underused.

Motorola also unveiled another partnership with Web portal Google. The 3-year deal will bring Google's search page onto Motorola's phones. Durchslag said the deal was made partly due to pressure from carriers asking for the vaunted search engine. Similar to the Kodak deal, it is not exclusive. Financial terms were not disclosed.

The first handsets to use the Google function will be out in the first quarter.

-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 6th January 2006