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Fox Business Network anchor Stuart Varney to interview industry visionaries at PMA 08 Official Business Session

A panel of imaging experts will discuss the evolution of the imaging business and the impact of new technology at the first Official Business Session at PMA 08, on Jan. 31, from 9:00-10:30 a.m. at the Las Vegas Convention Center, Las Vegas, Nev. Panelists will be interviewed by Stuart Varney of the FOX Business Network. Varney is a financial and economic journalist and formerly the host of the CNBC’s broadcast of “The Wall Street Journal Editorial Board with Stuart Varney” and co-host of CNN’s “MoneyLine News Hour” from 1999 to 2001. Varney joined the Fox News Network in December 2003 as a contributor to a variety of shows.

The panel of visionaries includes:

Quincy L. Allen, president of the Production Systems Group at Xerox Corp., is responsible for the company’s high-end systems, software and service offerings for the graphic communications industry. He leads Xerox’s efforts to leverage the power of digital printing in the offset printing market, targeting growth opportunities in just-in-time printing, customized printing and on-demand book publishing.

F. Mark Gumz, president and chief operating officer of Olympus Imaging America, was appointed to the position in January 2000. He brings experience in e-business, international trade and new business development to the panel. Gumz directs efforts to capture and package Olympus’ industry expertise in a consultative offering in the healthcare industry.
Brad Kruchten, general manager of Retail Printing, and vice president with Eastman Kodak Co., is responsible for the products and services that enable retailers to offer an integrated retail solution to analog and digital photographers. These products and services include kiosks, paper, retail workflow software, service and support. Kruchten also has responsibility for Qualex and Event Imaging Solutions, which are wholly-owned subsidiaries that provide photo services to retail consumers and guests at theme parks and other attractions.

David Murphy is senior vice president, IPG Web Services & Software Business, for HP Co. He is responsible for driving IPG’s Web service and software growth across all customer segments. Prior to joining HP, Murphy’s most recent role was CFO for Mercury Interactive.
John Prendergast is vice president, Product and System Development, for the Imaging Group at Fujifilm U.S.A. Prendergast is responsible for the development of retail imaging solutions, including hardware, workflow software and system integration for Frontier and GetPix kiosk solutions.

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New licensing program offers video producers way to license digital contest, says WEVA

According to the Wedding Event and Videographer Association (WEVA) December issue of the Wedding & Event Videography Resource Guide, a new licensing program called LicenseStream by ImageSpan offers video producers a new way to license digital content. The software is designed to increase product demand by speeding the transaction process and avoiding legal hurdles, says WEVA. Videographers can upload, register, describe, and define rights to their work and then market and license that work online all without paperwork, pricing hassles, or middlemen.

The new licensing program developed exclusively for WEVA members offers professional videographers advantages that would otherwise more money to access any other way, and will include built-in avenues for creating new income streams based on digital content videographers are currently producing, or already have in stored files, says WEVA

Various media companies have already begun using ImageSpan’s licensing technology through its CurbStream platform. CurbStream enables the assignment of local shoots to WEVA members worldwide and automatically enables the content to be rights-cleared and licensable for use. WEVA members can register (at no cost) for local shoots and upload raw footage via CurbStream’s online interface.

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Royal Marketing files breach of contract lawsuit against Lucky Film

Following the announcement that Eastman Kodak Co., will sell its stake in Lucky Film to Guangzhou Chengxin Venture Capital Ltd., Royal Marketing, based in

Chatsworth, Calif., filed a lawsuit against Lucky Film alleging breach of contract.

In March 2006, after numerous meetings between Royal Marketing and China Lucky Film Corp., the two companies entered into an exclusive agreement for the distribution of Lucky Film products in North America. The key product was the SA-10 color photographic paper, which incorporated Kodak technology in its emulsions. Samples of these products were imported into the United States and tested by various long-term customers of Royal Marketing. When these customers indicated their acceptance of the paper, Royal Marketing placed a substantial order for products from Lucky Film.

Lucky Film then indicated that SA-10 could not be sold in the United States until an agreement was reached with Kodak, and suggested that SA-5, which used Lucky Film technology, be substituted. This paper, however, did not have the same characteristics and was rejected by Royal Marketing customers, according to the company.

Early last year, Royal Marketing received a letter from Kodak indicating that the importation of SA-10 and SA-5 paper would violate Kodak’s patents. Shortly thereafter, Lucky Film, through General Manager Yuechang Li, conceded that it had never confirmed with Kodak that it had the right to sell the paper in the United States.

Consequently, Royal Marketing recently filed a lawsuit in California alleging Breach of Written Contract, Breach of Implied Covenant of Good Faith and Fair Dealing, Fraud, Negligent Misrepresentation, Negligence, and Breach of Warranty.

Although the exact details of the agreement between Kodak, Lucky Film, and Guangzhou Chengxin have not been made public, Royal Marketing says while Lucky Film will pay Kodak a lump sum for its licensing, shipment of Lucky Film paper to certain countries, including the United States, will still be precluded.

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Celebration Studios files for bankruptcy, couples file lawsuits as photo scandal develops

Michael Ruiz de Somocurcio, a health insurance executive from Clifton, N.J., paid $5,500 to Celebration Studios, a regional photography service, before his wedding in September, says a recent article in The New York Times. The price included albums, personalized thank-you notes, and a DVD of his wife Erika and himself.

The couple never received what they paid for. Celebration Studios, with offices in New York, New Jersey, and Pennsylvania, closed this month and is filing for bankruptcy. Hundreds of couples have no photos of their wedding day, and those who have made down payments for the company services now have to look elsewhere. A previous Newsline International item covers the beginning of this story reported in the Asbury Park Press.

Many newlyweds are filing police reports and lawsuits, says the article. The New Jersey attorney general’s office filed a civil lawsuit against the company and its owner, Marc S. Schwartz, citing fraudulent practices. It also issued an order to prevent them from selling or disposing of the wedding images that had not been delivered.

Federal tax liens of more than $456,000 and a New Jersey tax lien of more than $86,000 have been filed against Celebration Studios in the last 2 years, court records show.

The Montclair Police Department received about 40 fraud reports about the company from Jan. 11-18, said Deputy Chief Roger Terry. He said the department had not filed charges, pending the outcome of various court cases, reports The New York Times.

A statement issued by the company claims that no photos or wedding memorabilia has been lost or destroyed, but the company cannot continue its business. Celebration Studios will be filing for Chapter 7 bankruptcy in federal court in Newark in the next week, accoridng to the article.

Newlyweds and those who provided a down payment aren’t the only people upset — photographers say they, too, have been cheatedy. Josephine Donatelli, a photographer from Scotch Plains, N.J., who worked with Celebration Studios before opening her own studio, said she had received checks from Celebration that had stop-payment orders on them, and other checks that bounced. She eventually got paid, after waiting three months, according to the article.

According to the suit filed by the New Jersey attorney general, Anne Milgram, the company “engaged in the use of unconscionable commercial practices, false promises, misrepresentations and/or the knowing concealment, suppression or omission of material facts.”

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Photo library Getty Images admits it is for sale

Although Seattle, Wash.-based Getty Images said it was its policy “long-standing policy” not to confirm or deny rumors, the company confirmed it was exploring strategic alternatives in response to an article published on Jan. 21 in The New York Times.

The New York Times reported that Getty shareholders could rake in more than $1.5 billion from a sale and that private-equity firms, including Kohlberg Kravis Roberts and Bain Capital, which was founded by presidential candidate Mitt Romney, had already expressed interest.

Getty said that while discussions with prospective buyers are ongoing there is no guarantee that a sale will occur, reports a Forbes.com article. The company said it isn’t planning on updating the United States stock market with any more information on the process until its board thinks it is appropriate. The company said it has hired Goldman Sachs as its financial adviser and Weil, Gotshal & Manges as its legal adviser.

With increasing competition from cheaper competitors and new technology, some have called into question the sustainability of Getty’s business model, says the Forbes.com article. But Thomas Weisel Partners analyst Christa Quarles said the company’s assets, such as its iStockPhoto business, add value. She said iStockPhoto, a stock photography website, could bring in as much as $83 million in 2008 alone. Getty bought it for $50 million in 2006.

Quarles said that cost-cutting initiatives such as layoffs will also help spur along a sale. Last August the company said it was slashing 100 workers, 5 percent of its full-time staff, but Quarles says it’s being too slow with the cuts.

Last year, Getty had looked into buying a smaller rival, Jupiter Media, but negotiations between the companies were abandoned, reports Forbes.com. <<back to top/span>

In memoriam: Howard Hanson

Howard Hanson, 89, of Sioux Falls, S.D., passed away on Jan. 22 at Sanford Hospice Cottages due to complications from a stroke. Emil Hanson opened a Sioux Falls portrait studio in 1910 and was joined by his sons Harold and Howard in 1938. Howard served during World War II leading a combat photo unit throughout France, Belgium, the Netherlands, and Germany. He was awarded the Bronze Star.

After the war, the two brothers expanded the company now known as Harold’s Photography. It grew to nine retail camera stores and a regional wholesale photofinishing lab. Howard retired in 1983, but continued to check on the stores until the end. Howard was preceded in death by his parents, his wife Bobby in 2006, and his brother Harold. Harold’s Photo Centers is now operated by Howard’s son Bob Hanson, and his grandchildren Davis Hanson, Andrew Hanson, and Emily Efrman.

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In memoriam: Arthur J. Reed Jr.
Arthur J. Reed Jr., a former Eastman Kodak regional manager, passed away on Jan. 16 in Atlanta, Ga. Reed was born June 14, 1925, in Pittsburgh, Pa. He was a World War II veteran and served in the U.S. Army in Europe and Asia. Reed graduated from the Rochester Institute of Technology and entered the professional photography business in Auburn, N.Y., where he met his wife Marj. He was an accomplished photographer and enjoyed many hobbies, including golf, woodworking, and model trains.
Reed retired from Eastman Kodak Co., after 35 years, as regional sales manager of the Professional and Finishing Markets Division in Atlanta, Ga. He was named an honorary life member of the Southeastern Professional Photographers Association, and he earned the coveted Photographic Craftsman degree from Professional Photographers of America. Reed was also a member of Northwest Presbyterian Church, serving most recently as an elder. Additionally, he volunteered with the Atlanta Executive Service Corps, Habitat for Humanity, and Freebytes (doing refurbishing of donated computers for use by nonprofit organizations).
Reed is survived by his wife of 57 years Marjorie Lee Reed of Atlanta; son Scott of Duluth, Ga.; daughter Kristen (Paul) Deininger of Indian Harbour Beach, Fla., and other family and friends. A celebration of Art’s life was held on Jan. 22 in Atlanta. In lieu of flowers, the family requested donations to the American Heart Association. Condolences can be expressed at www.ajc.com/obits. The Atlanta Journal-Constitution also wrote about Reed.

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In memoriam: Henry Froehlich
Henry Froehlich, the founder of Konica Camera Co. and a pioneer and leader of the photographic industry, passed away Jan. 24 at the age of 85. Born Hans Froehlich on Aug. 7, 1922, in the town of Rottweil, Germany, he moved to the United States and brought his “little Agfa camera and some film,” with him. He took his first job in the photo business with a company called Landes Brothers who manufactured “bank lights” where he worked as an assembler. As he states in his memoirs “somewhere along the way, I started an import/export business.” Froehlich was among the first to recognize the potential in photographic products made in Japan. He concentrated his efforts on Japanese companies that had good quality products but lacked U.S. representation.
Froehlich founded Konica Camera Co. (now Konica Minolta ) in Philadelphia, Pa., in 1951, having previously acquired the sole U.S. distribution rights for Konica cameras from Konishiroku Photo Industry Co. Ltd. of Tokyo, Japan.
As one of the pioneers who introduced Japanese quality cameras into the United States after World War II, he participated actively in the Japanese Camera Inspection Institute’s U.S. “Japanese Camera Center” to conduct industry wide promotions and create consumer acceptance for Japanese cameras. He was subsequently elected to membership in the Pioneer Club in Japan.
He merged Konica Camera Co. with Berkey Photo in 1962, which then also marketed other Japanese photographic products. He went on to become president of Berkey Photo, a position he held until 1982. He also founded the Froehlich FotoVideo Corp. There he pioneered the concept of film-to-tape transfer, and developed unitized equipment systems, which could perform this service within the retail environment of camera stores and minilabs.
In 1987, when the exclusive distribution rights for Mamiya medium-format cameras and Toyo large-format cameras became available he formed a partnership with Paul Klingenstein and Jan Lederman to establish a new company called Mamiya America Corp. (MAC). Within the next few years they made these products the market leaders in their respective fields. The name of the MAC company was eventually modified to the MAC Group, and more lines were added to its product offering. In 2006, Froehlich retired as chairman of the board of the MAC Group.
In 1988, PMA presented Froehlich with its Distinguished Service Award , is awarded to individuals with years of service and dedication to the imaging industry. From its inception, Froehlich was an advocate of The International Center of Photography because he believed it its principles. He became involved in their activities and was a member of its President’s Council. He will be remembered for his philanthropic efforts on behalf of numerous organizations including The Blue Card, whose purpose is to provide financial assistance to needy Holocaust survivors, as well as award winning Theater by the Blind.
He is predeceased by his brothers Albert and Max. He is survived by Marian Froehlich, his wife of 57 years; his son Peter Froehlich, daughter Carol Froehlich-Hull; grandchildren Lindsey, Max, and Sarah; and great granddaughter Alexandra.

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People on the move

· Sprint Nextel Corp.,

Reston, Va., announced the departure of three senior executives, including the finance chief, as the new chief executive, Dan Hesse, moves quickly to put his stamp on the wireless-phone company, reports The Wall Street Journal. Sprint said Paul Saleh, its chief financial officer since 2001 left. Chief Marketing Officer Tim Kelly and Mark Angelino, president of sales and distribution, are also departing. Hesse said he would “act as quickly as possible” to fill the positions on a permanent basis with internal or external candidates, reports The Wall Street Journal. In the interim, Sprint named William G. Arendt as acting finance chief, John Garcia as acting chief marketing officer, and Paget Alves as acting president of sales and distribution.

· Eastman Kodak Co.,

Rochester, N.Y., named Ann Moscicki senior manager, Public Relations, for its Graphic Communications Group (GCG). In her new role, Moscicki will oversee all United States and Canada public relations activities including media relations, the executive speakers’ program and trade shows. She also will support Kodak’s Graphic Communication Group’s worldwide public relations program. Moscicki has more than 30 years’ experience in the communications field for Kodak. Previously, Moscicki held the position of manager, Worldwide Segment Marketing, Kodak’s Graphic Communications Group. In this role, Moscicki supported segment communications activities for commercial, packaging, data centers and newspapers, including managing customer councils for these segments.<<back to top

Industry notes

· Pocket Photo Suite is helping professional photographers attain a new level of freedom and mobility in digital photography. Made by InVision Software, Long Island, N.Y., the product is a wireless photo transfer and management solution that allows communication between a digital camera and a mobile device that will rapidly transfer images over any network connection. Learn more in today’s DIMAcast podcast, in which Digital Imaging Digest Editor Jennifer Kruger interviews Rob DeStefano, sales and marketing manager for InVision Software.

· Kingston Technology Co. Inc., Fountain Valley, Calif., posted the latest series of images submitted by aspiring photographers worldwide seeking advice for taking better pictures from its Icons of Photography members.

Critique My Image, a feature offered through Kingston’s Icons of Photography microsite, provides professional and aspiring photographers with an opportunity to have their images reviewed by some of the best photographers in the world, says the company. In this installment, each photographer selected several images from the scores of photographs submitted and provided constructive advice for improving or enhancing each photograph. From lighting and exposure to composition and styling, each critique is constructed as a lesson that can be applied by all viewers to their respective photography. Visitors are encouraged to upload images for critique by logging onto www.kingston.com/iop. Kingston’s Icons of Photography includes documentary photographer and photojournalist, Colin Finlay, National Geographic photographer Gerd Ludwig, and Sports Illustrated photographer Peter Read Miller.

· Fujifilm U.S.A. Inc., Valhalla, N.Y., announced that Ritz Camera Centers, the largest specialty camera and image chain in the United States with approximately 1,000 locations, is expanding its portfolio of customer offerings with a new solution that enables in-store production of specialty photo products. In partnership with Xerox Corp., Fujifilm has devised a solution for Ritz Camera Centers that offers seamless integration with Xerox Phaser 7760 color laser printers. With this new complete photo specialty print solution, Ritz Camera customers will be able to create photo books, photo calendars, and greeting cards quickly and easily via in-store kiosks or through the Ritz Camera Centers website, www.ritzpix.com, for in-store pick up in as little as one hour.

· Sequoia Media Group LC, Draper,

Utah, and Qualex Inc., Durham, N.C., a wholly owned subsidiary of Eastman Kodak Co., entered into two agreements dealing with distribution and service. In the first agreement Qualex will distribute Sequoia’s aVinci Experience product line to partner photo retailers and vertical market sales channels. The other agreement establishes Qualex as the preferred fulfillment source for aVinci Experience products offered through select major retailers and online vendors. Sequoia’s technology turns personal digital photographs into professionally produced DVD movies, photo story books, and posters.

· Larson-Juhl Inc.,

Norcross, Ga., a custom framing manufacturer and distributor, has found its way into Donald Trump’s boardroom. Producers of the hit reality series “Celebrity Apprentice” tapped Larson-Juhl and its newly launched online art division, Artaissance, to provide the majority of custom art and framing on “Celebrity Apprentice” that airs Thursdays at 9:00 p.m. EST on NBC. Artaissance features more than 100 artists and a library of more than 2,000 exclusive images. Throughout this season, viewers can see more than 50 custom art and framing pieces featured in the show’s boardroom, war rooms and other high-profile areas. Eastman Kodak Co., Rockester, N.Y., is also a sponsor of the television series. On Jan.17, the challenge for the contestants to comple featured Kodak. The celebrity contestants created and operated a mobile printing station showcasing Kodak products. The celebrities had to successfully work with Kodak in hopes of staying in the show. Kodak features a website dedicated to its involvement with the popular series.

· Unisource Worldwide Inc.,

Norcross, Ga., launched its Porcelain Ultra coated paper in its Western U.S. markets. Porcelain Ultra, a sheet-fed paper grade manufactured by UPM, is available with both a 94 bright gloss, and a 95 bright silk coated enamel finish. Unisource has sold Porcelain Ultra in its Midwest and Eastern U.S. markets, and the brand’s success sparked expansion to the West to provide national availability to customers.

Unisource has partnered with design and marketing agency Function:, Atlanta, Ga., to create a high-end remembrance book paying tribute to Rolling Stone magazine photographer Baron Wolman. The volume, showcasing Porcelain Ultra, will be used as a promotional tool to help launch the paper brand on the West Coast.

· Commodity Resource & Environmental Inc., (CRE) Burbank, Calif., has purchased and recycled ten million cameras through their One-Time/Single Use Camera Recycling Program. These cameras have been purchased and recycled by CRE from photo labs throughout the USA since the inception of the program. CRE provides all shipping materials and pays all shipping costs as part of this mail-in program. The labs currently and promptly receive a net payment of 14 cents per camera (70 cents per pound) for their cameras. No cameras are reloaded for reuse. All cameras are disassembled for complete recycling of batteries, plastics and electronic flash components.

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