Kodak Agrees to Sell Patents to Apple, Google, Others for $525 Million
Kodak has agreed to sell its digital imaging patents to two groups of bidders that includes Apple, Google, and Samsung.
Under the agreements, Kodak will receive approximately $525 million, a portion of which will be paid by 12 intellectual property licensees organized by Intellectual Ventures and RPX Corporation, with each licensee receiving 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.
The full list of 12 licensees are:
● Apple, Inc.
● Google Inc.
● Samsung Electronics Co., Ltd.
● Microsoft Corporation
● Amazon Fulfillment Services, Inc.
● Facebook, Inc.
● Research In Motion Limited
● Adobe Systems Incorporated
● HTC Corporation
● Fujifilm Corporation
● Huawei Technologies Co., Ltd.
● Shutterfly, Inc.
“This monetization of patents is another major milestone toward successful emergence,” Antonio M. Perez, Chairman and Chief Executive Officer, said. “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.”
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.
The proposed transaction is subject to the approval of the Bankruptcy Court.