Kodak Completes $527 Million Transaction Related to Digital Imaging Patents
Eastman Kodak Company, based in Rochester, N.Y., has completed a transaction for the sale and licensing of its digital imaging patents for net proceeds of $527 million.
The transaction, which achieves one of Kodak's key restructuring objectives, follows other recent major accomplishments that include final Court approval last week for the company's interim and exit financing. Kodak's monetization of IP assets further builds on its momentum toward emergence in mid-2013.
A portion of the $527 million was paid by 12 intellectual property licensees organized 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 licensing and sale of our digital imaging patents is another major milestone toward successful emergence," Antonio M. Perez, Chairman and Chief Executive Officer, said. "We are on track to emerge as a profitable, sustainable company."
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 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 announcement comes a year after Kodak filed for chapter 11 bankruptcy protection in January 2012. Since then, the company has sought the sale of its consumer and imaging units, ended its desktop printer business and accepted an addition $830 million in financing as it attempts to reconfigure itself into a solvent business focused on commerical printing.
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.
For more information, visit www.kodak.com.