Kodak Sells Off Patents for $525M

by Christopher Freeburn | December 19, 2012 11:12 am

Eastman Kodak[1]Bankrupt Kodak (PINK:EKDKQ) has agreed to sell a portfolio of digital imaging patents to a group of companies[2].

The group, which includes patent licensees Google (NASDAQ:GOOG[3]), Apple (NASDAQ:AAPL[4]), Research in Motion (NASDAQ:RIMM[5]), Samsung, Microsoft (NASDAQ:MSFT[6]), Facebook (NASDAQ:FB[7]) and Amazon (NASDAQ:AMZN[8]), will pay $525 million for the portfolio of patents, Bloomberg noted.

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[9].

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/05/Kodak.jpg
  2. portfolio of digital imaging patents to a group of companies: http://www.bloomberg.com/news/2012-12-19/kodak-agrees-to-sell-imaging-patents-for-525-million.html
  3. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. RIMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIMM
  6. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  7. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  8. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  9. lower the chances of subsequent patent infringement litigation: https://investorplace.com/2012/12/apple-google-partner-to-buy-kodak-patents/

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