Kodak Completes Sale of Digital Imaging Patents
ROCHESTER, NY—Eastman Kodak has completed a transaction for the sale and licensing of its digital imaging patents for net proceeds of $527 million. The transaction, which achieves one of Kodak’s key restructuring objectives, follows other recent developments that included final court approval last week for the company’s interim and exit financing. Kodak’s monetization of IP assets further builds on its momentum toward emergence from Chapter 11 in mid-2013.
A portion of the $527 million was paid by 12 intellectual property licensees organized by Intellectual Ventures and RPX Corp. Another portion was paid by Intellectual Ventures, which acquired a substantial majority of the digital imaging patent portfolio subject to these new licenses, as well as previously existing licenses.
“The licensing and sale of our digital imaging patents is another major milestone toward successful emergence,” said Antonio Perez, chairman and CEO. “We are on track to emerge as a profitable, sustainable company.”
The completion of the sale enables Kodak to repay a substantial amount of its initial DIP loan, satisfy a key condition for its newly approved financing facility, and position its core Commercial Imaging business for future growth and success.
Kodak retains significant assets in its core Commercial Imaging businesses. In addition to retaining rights to use the 1,100 digital imaging patents sold in the transaction, Kodak maintains ownership of about 9,600 patents, including many focused on its core business.
The transaction 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 core operations.