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Kodak Sells Imaging Patents for $525 M to Tech Companies

The financially troubled company will be selling the bundle for around $525 million. A portion of that figure will be paid by 12 intellectual property licensees via RPX Corp. Each licensee will obtain rights to the patent portfolio, as well as other select Kodak patents. Another segment of the money will be paid by Intellectual Ventures.

The deal also includes an agreement to settle patent-related lawsuits between the involved parties and Kodak. The deal itself is required to be approved by a bankruptcy court in January, followed by 45 days to complete the deal.

Sources familiar with negotiations said Intellectual Ventures and RPX are representing several large imaging and technology companies, including Apple, Research In Motion, Google, Samsung, Adobe, HTC, Fujifilm, Facebook, Huawei, Amazon, Shutterfly and Microsoft.

"This monetization of patents is another major milestone toward successful emergence," said Kodak's Antonio M. Perez, Chairman and Chief Executive Officer. "Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company. This proposed transaction enables Kodak to repay a substantial amount of our initial DIP loan, satisfy a key condition for our new financing facility, and position our Commercial Imaging business for further growth and success."

Kodak is selling its patents in order to help pay back a $950 million loan it received from Citigroup to stay in business. Both Apple and Google were previously rumored to be joining forces to submit a $500 million bid for the patents.

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