Eastman Kodak Company has filed a motion seeking approval of bidding procedures for the prompt bankruptcy auction of its Digital Capture and Kodak Imaging Systems and Services (KISS) Patent Portfolios, comprising more than 1,100 patents that are integral to the capture, manipulation, and sharing of digital images.
Kodak’s motion outlines a sale process that is open to all qualified bidders subject to the rules of the bidding procedures. No disclosure of the unsuccessful bidders will be made to other bidders or the public. Only the winning bidder and the amount of the successful bid will be announced publicly at the end of the auction.
“The proposed structure of the auction is tailored to the special nature of the assets,” says Timothy Lynch, Kodak vice president and chief intellectual property Officer. “The bidding procedures are designed to allow bidders to give us their best offers without fear of showing their cards to competitors. In filing these proposed procedures in advance of the June 30 deadline in our lending agreement, we are moving ahead as quickly as possible with the process of monetizing our digital imaging patent portfolio.”
Since 2001, Kodak says it has generated more than US$3 billion from licensing its digital imaging portfolio to industry leaders, including Samsung, LG, Motorola, and Nokia, and is currently pursuing patent litigation against infringers that include Apple, RIM, and HTC. Kodak expects the motion to approve bidding procedures to be heard by the Court on July 2, the auction to be held in early August, and the winning bidder to be announced by Aug. 13.