By: Sharon Urias, Esq.
In January 2012, Eastman Kodak, the 131-year-old film pioneering company, filed for bankruptcy protection. Kodak was once one of America’s most notable companies, but has faltered in recent years due to the onset of digital photography, that has basically done away with the demand for traditional film.
In a last ditch attempt to raise cash, Kodak announced in July that it will be selling its digital imaging patents as part of its bankruptcy proceedings.
As strange as it may seem, two companies that have been involved in trademark and patent litigations in the recent past, Apple and Google, have now joined forces to obtain the imaging patents of Eastman Kodak.
These two technology giants are working together in bidding on an undisclosed number of Kodak’s 1,100 patents. These patents are related to capturing, manipulating and sharing digital images. Although Kodak has valued the patents to be worth over $2 billion in court documents, claiming it made more than $3 billion by licensing the patents to companies such as Samsung, Motorola and LG Electronics, those bidding for the patents disagreed, with first round bids reported to be in the $200 million range.
Kodak needs to sell its patents for at least $500 million as it needs to secure $850 million to be able to exit bankruptcy.
At first, Google and Apple bid against each other, but then the two smartphone competitors joined forces, in a move which will allow both companies to reduce costs and to also limit the likelihood of future patent infringement claims. Both Apple, Google and Kodak have declined to comment on the alleged bid.
If Kodak is able to secure its bankruptcy exit financing, the company will downsize and move its focus away from photography and instead, focus on commercial, packaging and functional printing services.
Original story can be read here and here.
