(By Balachander) Eastman Kodak Co. agreed to sell its digital imaging patents for roughly $525 million to a consortium led by Intellectual Ventures and RPX Corp., as part of a key move to emerge from bankruptcy.
The Rochester, New York-based photography pioneer filed for bankruptcy protection in January after struggling to adapt to the digital era.
A group including Apple Inc. (AAPL), Google Inc. (GOOG), Microsoft Corp. (MSFT), Amazon.com Inc. (AMZN), Research In Motion Ltd. (RIMM) and Facebook Inc. (FB) are among the 12 intellectual property licensees taking part in the deal, according to a court filing seen by Bloomberg.
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Apple and Microsoft are said to back Intellectual Ventures, while Google, LG and HTC are reportedly supporting RPX.
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Under the terms of the agreement, Intellectual Ventures will pay a portion of the payment, while the 12 licensees will make rest of the payment.
"This monetization of patents is another major milestone toward successful emergence," Antonio M. Perez, Chairman and Chief Executive Officer, said.
Eastman Kodak said the proposed deal enables the company to repay a substantial amount of its initial DIP loan, satisfy a key condition for its new financing facility, and position its Commercial Imaging business for further growth and success.
Commercial Imaging is a business in which Kodak has significant competitive advantages and strong growth prospects, the company noted.