Kodak sells patents for $525m
Kodak has sold its digital imaging patent portfolio to a consortium organised by non-practicing entities Intellectual Ventures and RPX Corporation for $525m.
The company, which filed for bankruptcy in January, sold 1,100 of its patents to companies including Apple, Microsoft and Amazon.
The transaction is a key milestone in the company’s restructure, allowing development of its commercial imaging technologies.
Antonio M Perez, Kodak’s Chairman and Chief Executive Officer, 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.”
Early estimates valued the patent portfolio at $2.6bn.
David Knight, partner at Field Fisher Waterhouse, said: “A deal that values 1,100 patents at an average of $0.5 million per patent is not bad going in this technology space, especially when one considers that Kodak's downfall arose from being late in the digital imaging space and therefore as a generality its patents will be behind the curve on the technology."
"From Kodak's perspective any deal that enables it to remain in business is a 'good deal'; at least the company will survive, albeit without the patent rights to this technology."
The deal also includes an agreement to settle any existing lawsuits between Kodak and the new patent owners.
The sale is subject to approval by the US Bankruptcy Court based in Manhattan.
