The patent sale is an essential step in the turnaround of the company, which bungled efforts to reduce its reliance on film sales and is continuing a risky transformation to compete against bigger rivals such as Hewlett-Packard Co. in the market for printers.
Creditors believe the company’s 1,100 patents hold most of its value. The Rochester, N.Y., company has said an independent review of its patents put their worth up to $2.6 billion.
A recent adverse legal ruling has tarnished their prospects. A strong sale would let Kodak pay off its debts and leave it with cash to fund its new businesses. In the worst case for Kodak’s 17,100 employees, a failure to monetize the patents could force the company to liquidate.
- Kodak’s Patent Auction Hits Hurdles (online.wsj.com)
- Kodak faces patent ruling setback (bbc.co.uk)
- Kodak Loses ITC Patent Suit Versus Apple And RIM (forbes.com)