Apple’s request to transfer its patent dispute with Kodak from a bankruptcy court to a New York court has been turned down.

U.S District Court Judge George Daniels ruled against changing the venue, saying it could hindered plans for bankrupt Kodak to sell off its patents. He said that before any transfer could take place, bankruptcy Judge Allan Gropper should first rule on "key issues”, according to a Reuters report. 

Daniels ruled that Judge Gropper should have "an opportunity to render a decision on the motion and to have an opportunity to control and move forward the process."

Apple’s lawyer Gregory Arovas had argued that the dispute involves substantive patent law, which he said should be addressed by a federal district judge.

Beleaguered Kodak, which filed for Chapter 11 bankruptcy in January, is hoping to sell some of its intellectual-property assets. The company has claimed that it has more than 1,000 other digital-image related patents. On 2 July Kodak claimed it had received approval from the bankruptcy court to go ahead with the auction of its digital imaging patent portfolios, despite claims to some of those patents by Apple and another company, FlashPoint Technologies.

Specifically, Apple has claimed 10 of the patents in the Digital Capture portfolio, citing its invention of the patents, and claims arising from joint development work and a contract between Kodak and Apple.

In May, ITC Administrative Law Judge Thomas Pender found that Apple's iPhone 3G and some RIM BlackBerry devices infringed on Kodak patent, U.S. Patent No. 6,292,218, but also ruled that the patent itself is invalid.

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