Kodak Sells Digital Imaging Patents To Consortiums Backed By Apple, Google For $525 Million
Struggling Kodak has finally agreed to sell its digital imaging patents to Intellectual Ventures and RPX Corporation — two consortiums backed by Apple, Google, Microsoft, and others — for $525 million. Kodak will receive a portion of the money from 12 intellectual property licensees, with each licensee receiving rights to the patents, while another portion will be paid by Intellectual Ventures, which will then acquire the digital imaging patent portfolio, plus the new and existing licenses.
Among the 12 licensees is believed to be Apple, Google, and Microsoft, plus Taiwanese smartphone maker HTC — though Kodak hasn’t confirmed exactly which companies are involved in the deals. The money will help Kodak recover from its recent bankruptcy, and allow it to “continue innovating in its core Commercial Imaging technologies.”
“This monetization of patents is another major milestone toward successful emergence,” Antonio M. Perez, Kodak Chairman and Chief Executive Officer, said.
“Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company. This proposed transaction enables Kodak to repay a substantial amount of our initial DIP loan, satisfy a key condition for our new financing facility, and position our Commercial Imaging business for further growth and success.”
“Kodak remains a major center of invention and innovation,” Perez added.
The transaction also includes an agreement to settle Kodak’s current patent-related litigation, which will help avoid additional litigation costs and ensure that the company’s resources can focus on enhancing the operations of its future business.