KODAK patent portfolio transaction: $525 Million
There are reports in the media that KODAK has executed patent and licensing deals for its digital imaging patents for US$525 million. The counter parties include some of the biggest technology names, including ADOBE SYSTEMS., HTC, HUAWEI TECHNOLOGIES, MICROSOFT, RIM, SAMSUNG, and SHUTTERFLY.
While the deals are worth less than the expected US$2-3 billion dollars, they highlight the immense value that intellectual property can add to a company, representing a very real asset. In this case, the intellectual property deal may well save the ailing KODAK which is currently in Chapter 11 bankruptcy.
It is likely that the patents will be added to the recipients’ war chest that may be used in the future to fend off potential patent litigation.