Kodak Makes $525 Million Patent Sale Official
By: Caroline Tucker
Updated: December 23, 2012
After weeks of keeping a patent deal under wraps, Kodak has announced it will receive $525 million for its digital imaging patent portfolio.
The amount comes in below expectations for roughly $2.6 billion.
Intellectual Ventures and RPX Corporation organized the deal that includes 12 tech companies interested in Kodak's patents.
They include; Apple, Research in Motion, Google, Samsung, Adobe Systems, HTC Corporation, Facebook, Fujifilm, Huawei Technologies Co., Amazon Fullfillment Services, Shutterfly, and Microsoft.
Many of these companies, like RIM and Apple have been in fierce patent litigation in recent years.
Many of these companies, like RIM and Apple have been in fierce patent litigation in recent years.
This deal will settle current patent-related lawsuits.
It means Kodak will save thousands of dollars in legal fees down the road.
Kodak said Wednesday, "this is a significant success. Throughout the process, speculation of what we could receive varied from fractions to multiples of the $525 million we secured."
The money will allow Kodak to pay back a large portion of the nearly $1 billion Citigroup loan, fulfill a requirement for $850 million in new financing, and set it on a path to get out of bankruptcy in mid 2013.
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