Eastman Kodak Company has completed a series of agreements that successfully monetizes its digital imaging patents. The company will sell its digital imaging patents to twelve intellectual property licensees organized by Intellectual Ventures and RPX Corp. The licensees are major technologies companies interested in digital imaging patents and technologies.
It is believed that the dozen of licensees are Adobe, Amazon, Apple, Facebook, Fujifilm, Google, HTC, Huawei, Microsoft, RIM, Samsung and Shutterfly. 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 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 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 of Kodak.
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.
The proposed transaction is subject to the approval of the Bankruptcy Court and the satisfaction of certain customary conditions.