Eastman Kodak Company has completed a transaction for the sale and licensing of its digital imaging patents for net proceeds of US$527m, taking the company to a place of greater financial security.
The transaction, which achieves one of Kodak’s key restructuring objectives, follows other recent accomplishments that include final Court approval last week for the company’s interim and exit financing.
Kodak’s monetisation of IP assets further builds on its momentum toward emergence in mid-2013 from Chaopter 11 bankruptcy protection. The company is repositioning itself into its primary markets of commercial printing and packaging
Antonio Perez, chairman and chief executive officer of Kodak says, “The licensing and sale of our digital imaging patents is another major milestone toward successful emergence. We are on track to emerge as a profitable, sustainable company.”
A portion of the $527m was paid by 12 intellectual property licensees including Apple and Google organised by Intellectual Ventures and RPX Corporation. Another portion was paid by Intellectual Ventures, which acquired a substantial majority of the digital imaging patent portfolio subject to these new licenses, as well as previously existing licenses.
The completion of the sale enables Kodak to repay a substantial amount of its initial DIP loan, satisfy a key condition for its newly approved financing facility, and position its core Commercial Imaging business for future growth and success.
Kodak says it retains significant competitive advantages and strong growth prospects in its core Commercial Imaging businesses. In addition to retaining rights to use the 1,100 digital imaging patents sold in the transaction, Kodak maintains ownership of about 9,600 patents, including many focused on its core business.
The transaction 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 core operations.
