Apple and Google Unite for $500 Million Bid on Kodak Patents
By Rob Scott
December 10, 2012
December 10, 2012
- Apple and Google have teamed to offer more than $500 million to purchase Eastman Kodak’s patents out of bankruptcy, according to people familiar with the matter.
- “The two companies, competing for dominance of the smartphone market, have partnered after leading two separate groups this summer to buy some of Kodak’s 1,100 imaging patents, said the people, who asked not to be identified because the process is private,” reports Bloomberg.
- Unlikely partnerships are not uncommon when they involve patent sales, since companies hope to avoid potential infringement litigation. Last year, a group including Apple, Microsoft and RIM acquired more than 6,000 Nortel patents for $4.5 billion.
- “Apple and Google learned a lesson from the Nortel auction,” suggests Richard Ehrlickman, president of IP Offerings, a patent brokerage and consulting firm. “They have decided to come together in this process to reduce the cost of purchasing the Kodak patents, while meeting their business needs.”
- The patents relate to capturing, manipulating and sharing digital images. “Kodak obtained commitments for $830 million exit financing last month, contingent on its sale of the digital-imaging patents for at least $500 million,” notes the article.
- Kodak stated in court documents that the patents may be worth $2.21 billion to $2.57 billion. The company noted it has generated in excess of $3 billion in revenue by licensing digital-imaging patents to companies including Samsung, LG, Motorola and Nokia.
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