Kodak plans fast-track patent sale

 The imaging giant filed a motion seeking court approval for the sale this week.

The patent portfolio is split into two parts: Digital Capture which comprises more than 700 patents relating to image capture, processing and transmission typically used in digital cameras, smartphones and tablets. The second tranche is for some 400 Kodak Imaging Systems and Services (KISS) patents that cover techniques including image analysis and manipulation.

Kodak originally moved to sell the patents last summer, but the process stalled as its financial situation worsened. Licensing the know-how to companies including Nokia, Samsung and LG Electronics has generated more than $3bn in fees for the company over the past 11 years.

Kodak said 20 interested parties had signed confidentiality agreements and been given access to patent-related data as part of the marketing process. The auction will be confidential and restricted to qualified bidders. Only the winning bids will be revealed.

Explaining the rationale behind the auction, Kodak's chief intellectual property officer Timothy Lynch said the bidding process was designed "to allow bidders to give us their best offers without fear of showing their cards to competitors."

If the plan is approved, the patent sale will take place at the beginning of August and the results will be made known on 13 August.

Kodak's creditors will be watching proceedings closely, as gaining maximum value for the patent portfolio is fundamental to Kodak being able to pay off its debts.

A press release from the Worldwide Corporate office said:"Apple and Flashpoint Technology have demanded that this issue be heard by the District Court (typically a much lengthier process than in Bankruptcy Court)."

The release added: "Although the Court denied our motion in terms of an outright dismissal of these ownership claims, the Court also outlined three options for Kodak to move forward on a timeline that is favourable to Kodak and we were pleased that the decision made clear that Apple and Flashpoint Technology could not delay the proposed sale of these valuable patents."

Kodak statement said: The ruling on June 13 was a good outcome for Kodak. The Court outlined a path to ensure Apple and Flashpoint’s claims will not delay a sale. The Court also ruled that Kodak can move ahead quickly with an adversarial proceeding (a trial) in Bankruptcy Court and elicited from Apple and Flashpoint their assurances they would not try to prevent this. The real news here is that Kodak emerged from the day with assurance that it could press ahead to resolution before the Bankruptcy Court on an expedited basis."