Kodak Sells Imaging Patents For $525 Million

Struggling photographic firm Eastman Kodak Company (PINK:EKDKQ) has announced the sale of its digital imaging patents for $525 million to Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT)-backed Intellectual Ventures and RPX Corp (NASDAQ:RPXC)– a consortium backed by Google Inc (NASDAQ:GOOG), LG, and HTC Corp (TPE:2498), and others.

Kodak Sells Imaging Patents For $525 Million

In a statement released by the company, Eastman Kodak Company (PINK:EKDKQ) said it has found a buyer for its bundle of digital imaging patents. The company will receive part of the capital from 12 intellectual property licensees organised by Intellectual Ventures and RPX Corp (NASDAQ:RPXC). Each licensee will be granted rights to the digital imaging patent portfolio and other Kodak patents.

The remaining money will be paid by Intellectual Ventures which will acquire the digital imaging patent portfolio, subject to these new licenses, as well as previously existing ones.

Sources familiar with the negotiations said that Intellectual Ventures and RPX represent a large number of various big tech and imaging companies, including Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), Facebook Inc (NASDAQ:FB), Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM), Samsung Electronics Co., Ltd. (LON:BC94) (KRX:005930), Amazon.com, Inc. (NASDAQ:AMZN), HTC Corp (TPE:2498), Adobe Systems Incorporated (NASDAQ:ADBE), FUJIFILM Holdings Corp (TYO:4901), Huawei Technology Co Ltd (SHE:002502), and Shutterfly, Inc. (NASDAQ:SFLY).

The deal has been on-going since this past July; and the final figure is less than previously predicted. However, the company is in no position to be picky. The deal must be approved by a bankruptcy court in January, and once completed will also settle patent disputes between Kodak and the buyers.

Eastman Kodak Company (PINK:EKDKQ) has been dealing with bankruptcy proceedings through 2012, after filing for chapter 11 protection back in January. To stay in business, the company took a loan of $950 million that it received from Citigroup, the agreement of which stipulated that it must sell off some of its intellectual property.

Antonio Perez, Chairman and CEO, said: “This monetization of patents is another major milestone toward successful emergence.”

“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.”

Despite its struggles in recent years, the company believes that it still has some “competitive advantages and strong growth prospects” in commercial imaging technologies.

“Kodak remains a major center of invention and innovation,” said Perez.

Eastman Kodak Company (PINK:EKDKQ)’s shares didn’t move much on the news, but were up slightly by 0.81 percent, staying at $0.21.


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers