Bankruptcy Judge Denies Kodak Patent Motion, Gives Options
By: Caroline Tucker
Updated: June 13, 2012
A mixed decision for Kodak following another hearing in U.S. Bankruptcy Court.
The company is preparing for a major asset auction later this summer.
On Wednesday, the company asked a judge to solve some patent disputes before that happens.
But the judge turned Kodak down.
The issue in question are ten digital capture patents.
Kodak says they invented the ideas.
Apple and an offshoot company, Flashpoint, said they have ownership after they collaborated with Kodak in the 1990's.
Judge Allan Gropper decided not to rule on the patent dispute and instead found middle ground.
Judge Gropper told Kodak he declined it's "invitation" to reject apple's ownership claims.
But he cleared Kodak to sell the patents to the highest bidder.
The judge said Kodak could file an adversary proceeding in bankruptcy court to move things quickly.
The compromise though would allow for those patents to be put into escrow.
Any money made from the patents would go into an account, once it was decided who owned the patents, the owner would receive the money.
The options would mean that potential buyers of these contested patents would have to be aware that Apple or Flashpoint might have a financial stake in those patents.
Kodak spokesperson Chris Veronda released this statement following the decision:
"We are pleased. The Court outlined a path to ensure Apple and Flashpoint's claims will not delay a sale. The Court also outlined a path to proceed quickly with an adversary proceeding on an expedited basis in Bankruptcy Court and elicited assurances from Apple and Flashpoint that they will not seek to prevent this. It is a good outcome for Kodak and its stakeholders. We do not expect this to delay our sales process."
Kodak is back in court on July 2 and 2:30pm to discuss the plans for the summer patent auction.
