By: Peter Nguyen, 3L, Gonzaga University School of Law

Kodak, the company associated with popularizing photography, is apparently in financial distress.  However, Kodak may be seeing a large infusion of money if they can work out a deal for the sale of 1,100 of its digital imaging patents, about 10% of its patent portfolio. The company hopes that the sale will relieve it of some of its ongoing financial problems.

Many analysts, based off of  the recent sale of the Nortel patent portfolio, have projected that the 1,100 Kodak patents could sell for $2 to $3 billion, while others believe it might sell for even more than that. However, some analysts have pointed out that the value of the patents may be less due to possible licensing deals Kodak may already have for some of those patents.

Looking at recent history, two obvious potential buyers are Google and Apple.  With all of the patent litigation going on over both company’s mobile devices, it would not be unexpected for these two technology giants to purchase some more “ammo” to both defend themselves and go after their competitors.

Regardless of the actual figure that these patents sell for, this is another example of just how important patents have become. Whether through licensing revenue (Kodak has informed its investors to expect revenue of $250 to $350 million through 2013 from IP licensing) or the sale of the patents, they are of monumental importance to the profitability and overall health of a company, especially those in the technology field.

Links to Source Articles:

(1) Huffington Post - Kodak Patent Sale Could Save Photography Company From Bankruptcy

(2) WSJ – Kodak Starts Patent Sale

(3) Bloomberg – Kodak Said to Face Pressure From Bondholders on Patent Sale