Winner of Kodak auction may be determined by Aug. 23 ahead of final sale hearing
It was revealed in court documents filed on Friday that Kodak's patent auction will reach a final hearing on Aug. 30, pointing to a possible sale a week earlier where the company will determine which bidder, if any, has won the rights to the valuable digital imaging portfolio.
According to the notice filed with the U.S. Bankruptcy Court for the Southern District of New York, Kodak is expected to give the court a Notice of Final Sale regarding the auctioned patents by Thursday, with a final court hearing to follow a week later. The bankruptcy court was originally scheduled to hold the Final Sale Order hearing on Aug. 13, but Kodak was granted two extensions in hopes of raising more money.
Kodak is trying to sell off a portfolio of 1,100 patents in an effort to pay back over $660 million it owes lenders that furnished the photography pioneer with a loan to keep it afloat during bankruptcy proceedings. The company also owes another $750 million to secured bondholders, according to the Wall Street Journal.
It was reported last week that Apple allegedly created a consortium with Google and a number of Android licensees to buy the patents, keeping the digital imaging properties out of the hands of so-called "patent trolls." Initially, Apple and Google lead two opposing groups in the battle over Kodak's patents.
When bidding started in early August, the offers were much lower than Kodak's expectations, which estimated the portfolio's value to fall between $2.2 and $2.6 billion. According to sources familiar with the process, the maligned photography company first received bids of $150 million to $250 million, but that number has jumped to $500 million as of Friday.
The sale's bidding procedures allow for Kodak to sell the 1,100 patents at stake in pieces or to cancel the auction altogether, however the latter is unlikely given the company's dire financial situation. Once an unflappable force in photography, Kodak's prominence was marginalized by an unwillingness to adapt to the digital revolution.
Kodak plans to put whatever money is left over from the patent sale toward a corporate restructuring that would see the company emerge out of bankruptcy as a printer maker, taking on the likes of established industry giants like Hewlett-Packard.
According to the notice filed with the U.S. Bankruptcy Court for the Southern District of New York, Kodak is expected to give the court a Notice of Final Sale regarding the auctioned patents by Thursday, with a final court hearing to follow a week later. The bankruptcy court was originally scheduled to hold the Final Sale Order hearing on Aug. 13, but Kodak was granted two extensions in hopes of raising more money.
Kodak is trying to sell off a portfolio of 1,100 patents in an effort to pay back over $660 million it owes lenders that furnished the photography pioneer with a loan to keep it afloat during bankruptcy proceedings. The company also owes another $750 million to secured bondholders, according to the Wall Street Journal.
It was reported last week that Apple allegedly created a consortium with Google and a number of Android licensees to buy the patents, keeping the digital imaging properties out of the hands of so-called "patent trolls." Initially, Apple and Google lead two opposing groups in the battle over Kodak's patents.
When bidding started in early August, the offers were much lower than Kodak's expectations, which estimated the portfolio's value to fall between $2.2 and $2.6 billion. According to sources familiar with the process, the maligned photography company first received bids of $150 million to $250 million, but that number has jumped to $500 million as of Friday.
The sale's bidding procedures allow for Kodak to sell the 1,100 patents at stake in pieces or to cancel the auction altogether, however the latter is unlikely given the company's dire financial situation. Once an unflappable force in photography, Kodak's prominence was marginalized by an unwillingness to adapt to the digital revolution.
Kodak plans to put whatever money is left over from the patent sale toward a corporate restructuring that would see the company emerge out of bankruptcy as a printer maker, taking on the likes of established industry giants like Hewlett-Packard.
Comments
I think this is actually really sad. Kodak was great. Too bad it had to go down the way it did.
Don't hold your breath.
The bankruptcy court said that Kodak can sell the patents, but Apple claims that they own at least part of the portfolio.
Apple will likely ask an appeals court to block the sale.
Quote:
Originally Posted by jragosta
The bankruptcy court said that Kodak can sell the patents, but Apple claims that they own at least part of the portfolio.
Apple will likely ask an appeals court to block the sale.
I think they already have:
http://www.bloomberg.com/news/2012-08-07/apple-seeks-swift-appeal-of-kodak-imaging-patent-ruling.html
Apple should hold off until the last minute try to secure these solely for themselves, the strategic value of being able to cross license them to Google as part of a settlement over Motorola's patents, while withholding their more important iPhone patents is enormous.
Then continue with their current litigation strategy, which may be strengthened depending on how the Samsung case turns out.
Of course immediately terminating any existing licenses these companies may have regarding Kodak's patents could make them more amenable to settling on Apple's terms.
Both Samsung and Motorola have shown they have no qualms in terminating license agreements when it comes to Apple, what goes around comes around.
Karma is a bitch.
Thanks for the link - it had to happen.
Until the ownership of the patents is resolved, the bankruptcy court shouldn't allow their sale. The bankruptcy judge's logic was bizarre, too. He said that Kodak should be allowed to sell the patents because they would have to find some other source of funds if they couldn't do that. What kind of bizarre logic is that? If I rob a bank because I don't have money to pay my bills, I guess that's OK with this looney bankruptcy judge.
Kodak is an important company and I imagine they have a really great portfolio of innovation and generations of important imaging scientists and engineers . They are based out of Rochester, NY with is home of the RIT and the important Munsell Color Science Lab (which Kodak sponsored I had the privilege to visit once).
"It was reported last week that Apple allegedly created a consortium with Google and a number of Android licensees to buy the patents, keeping the digital imaging properties out of the hands of so-called "patent trolls." Initially, Apple and Google lead two opposing groups in the battle over Kodak's patents"
Peace loving ? good.
Litigation ? no good.
However, I think this apple's behavior is hypocrite.
Apple created Patent troll, called Rockstar Bidco. This apple's proxy keep suing competitors.
This kind of dirty tactic should stop.
Originally Posted by 845032
This kind of dirty tactic should stop.
But you're fine with inright, outright, upright, downright blatant IP theft because it "honors" the original to have made a copy of it, are you?
Quote:
Originally Posted by 845032
"It was reported last week that Apple allegedly created a consortium with Google and a number of Android licensees to buy the patents, keeping the digital imaging properties out of the hands of so-called "patent trolls." Initially, Apple and Google lead two opposing groups in the battle over Kodak's patents"
Peace loving ? good.
Litigation ? no good.
However, I think this apple's behavior is hypocrite.
Apple created Patent troll, called Rockstar Bidco. This apple's proxy keep suing competitors.
This kind of dirty tactic should stop.
Rockstar is an independent company and not Apple's proxy. While it is true that they are a patent troll, they do not execute orders from Apple.
Quote:
Originally Posted by ClementineOrange
Kodak is an important company and I imagine they have a really great portfolio of innovation and generations of important imaging scientists and engineers . They are based out of Rochester, NY with is home of the RIT and the important Munsell Color Science Lab (which Kodak sponsored I had the privilege to visit once).
Kodak was once on top of the game. That has long since passed. Sad, but true.
It is even sadder when Kodak is just across the river. I once had ambitions to work there but Kodak slowly collapsed over the last 20 years. That half of the city sort of looks like Detroit, not in a good way either.
and huge contaminated soil areas that need to be cleaned up, due to Kodak's manufacturing processes?. That won't happen on Kodak's dime, because they are insolvent?.