After Kodak accumulated $6.75 billion in debt, one of the exit was to sell its patents. By agreeing to sell its digital imaging patent portfolio to a consortium of 12 licensees, many familiar companies rushed into buying the patents which worth about $525 million.
While this helps with its bankruptcy restructuring, it also puts an end to all the Apple vs. Kodak interference. The deal is organized by patent-holding company Intellectual Ventures and patent risk advisory firm RPX Corporation.
"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," said Antonio M. Perez, Chairman and Chief Executive Officer.
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.
Kodak Announces Sale of Patents
Consortium organized by Intellectual Ventures and RPX Corporation to pay approximately $525 million for purchase and licenses of patents
ROCHESTER, N.Y., Dec 19, 2012 (BUSINESS WIRE) -- --Builds on Kodak's momentum toward a successful emergence in the first half of 2013
Eastman Kodak Company has completed a series of agreements that successfully monetizes its digital imaging patents.
The proposed transaction, which achieves one of Kodak's key restructuring objectives, follows other recent major accomplishments that include an agreement for interim and exit financing for the company's emergence from its Chapter 11 restructuring, and resolution of U.S. retiree non-pension benefits liabilities. Kodak's monetization of IP 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 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.
"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 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 said.
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 and the satisfaction of certain customary conditions.
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