Industry Brief : Kodak Finalizes Sale of Digital Imaging Patents for $527 MillionFebruary 4, 2013
Kodak’s monetization of IP assets further builds on its momentum toward emergence in mid-2013. A portion of the $527 million was paid by 12 intellectual property licensees organized by Intellectual Ventures and RPX Corporation. 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,” Antonio M. Perez, chairman and CEO, said. “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.
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 also included 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. kodak.com