Apple and Google Join Together to Purchase Kodak Patents
San Diego – Apple and Google are reportedly working together to offer Eastman Kodak more than $500 million for its imaging patents, which are being sold as part of Kodak’s bankruptcy proceedings.
The two technology giants are bidding on an undisclosed amount of Kodak’s 1,100 patents related to capturing, manipulating and sharing digital images. Kodak valued the patents at $2.21 billion to $2.57 billion in its court documents, claiming it has made more than $3 billion by licensing the patents to companies such as Samsung Electronics, Google’s Motorola Mobility unit, LG Electronics and other technology companies.
Bidding entities disagreed with the figure Kodak assigned to its patents, as the first round of bids were reported to be in the $150 to $250 million range, likely because the value of the patents has been diluted due to Kodak’s excessive licensing.
Kodak is unwilling to sell its patents for that low of a figure as its $850 million loan offer, which it needs to pull out of bankruptcy, is contingent upon its patents selling for no less than $500 million.
In the first round of bidding, California-based companies Apple and Google were bidding against each other. Apple is teaming up with Microsoft and Intellectual Ventures while Google is working with RPX Corp. and Asian manufacturers of Google’s Android phones.
Though Apple and Google are major competitors in the smartphone market and have had patent disputes in the past, partnering to purchase the patents allows both companies to not only reduce the cost but also limit the likelihood of patent infringement claims in the future.
This will not be the first time Apple has teamed up with a major competitor to purchase patents. Apple teamed up with Research in Motion, maker of the Blackberry, to buy 6,000 patents from Nortel Network’s Corp. for $4.5 billion. The companies were able to out bid Google, who only offered $900 million. Google and Apple refused to comment on the alleged bid, as each company said it would not comment on rumors. New York-based company Kodak would not comment on the purchase either, due to a court ordered confidentiality agreement.
Once Kodak secures its exit financing, it plans to shrink the company and move its focus away from photography, as the company was unable to keep up with the switch to digital. Instead, it plans to focus on commercial, packaging and functional printing services.
Posted in: Patent Registration