Kodak Announces the Sale of Its Digital Imaging Patents for $525 Million
ROCHESTER, NY—Dec, 19, 2012—Eastman Kodak has completed a series of agreements that successfully monetizes its digital imaging patents. Kodak’s monetization of intellectual property assets further builds on its momentum toward a successful emergence in the first half of 2013.
Under the agreements, Kodak will receive approximately $525 million, a portion of which will be paid by a group of 12 intellectual property licensees organized by Intellectual Ventures and RPX Corp. Each licensee will receive rights with respect to the digital imaging patent portfolio and certain other Kodak patents. Another portion will be paid by Intellectual Ventures, which is acquiring the digital imaging patent portfolio subject to these new licenses, as well as previously existing licenses.
According to published reports, Google, Apple and RIM are among the 12 patent licensees participating in the deal.
The transaction also includes an agreement to settle current patent-related litigation between the participants and Kodak, which avoids additional litigation costs and helps to ensure that management and the company’s resources focus on enhancing the operations of its core future businesses.
“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,” Antonio M. Perez, chairman and CEO, said.
The transaction enables the company to continue innovating in its core commercial imaging technologies that are fundamental to its future. Commercial imaging is a business in which Kodak has significant competitive advantages and strong growth prospects.
“Kodak remains a major center of invention and innovation,” Perez added.
The proposed transaction is subject to the approval of the bankruptcy court and the satisfaction of certain customary conditions.