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Kodak Sells Off Patents for $525M

It needed to sell the patents to obtain post-bankruptcy financing


Eastman KodakBankrupt Kodak (PINK:EKDKQ) has agreed to sell a portfolio of digital imaging patents to a group of companies.

The group, which includes patent licensees Google (NASDAQ:GOOG), Apple (NASDAQ:AAPL), Research in Motion (NASDAQ:RIMM), Samsung, Microsoft (NASDAQ:MSFT), Facebook (NASDAQ:FB) and Amazon (NASDAQ:AMZN), will pay $525 million for the portfolio of patents, Bloomberg noted.

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Kodak had previously said the patents were worth about $2.6 billion. The company noted that it still owns 9,600 other patents.

The sale of the patents was a crucial step for Kodak, which hopes to emerge from bankruptcy early next year. In order to get $830 million in financing, the company had to sell the patents for at least $500 million by the end of January. It must also find buyers for two businesses.

Kodak is shedding a number of assets, including its photo kiosk, commercial scanner and consumer film businesses and will leave the ink-jet market.

By partnering with each other for the Kodak patents, the technology companies involved in the group lower the chances of subsequent patent infringement litigation.

Article printed from InvestorPlace Media,

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