Kodak's Patent Portfoilo - On The Block

This coming Monday, the bidding will take place on the purchase of Eastman Kodak's patent portfolio. The deadline for bid submission is 5pm EST.   Over 1,100 patents will be up for sale with the most sought being those related to digital-photo technology.

Kodak hopes the auction proceeds will surpass the $2.6 billion estimated auction value of the patents  and provide it enough money to pay off it creditors and allow it to be released from bankruptcy (which it entered into earlier this year).  Early indications are that a bidding war may be brewing with Apple and Microsoft teamed with patent purchaser Intellectual Venture Management pitted against Google, patent purchaser RPX Corp.,  Samsung, LG Electronics, and HTC (the cell phone manufacturer).

Kodak hopes the opposing groups will enter into a bidding war as was the case last year when the same groups fought over Nortel Networks patents which finally sold (to the Apple/Microsoft group) for over $4.2 billion - and were not of the scope or  importance of the Kodak patents. Unfortunately, for Kodak, last week the U.S. International Trade Commission invalidated one of Kodak's most valuable patents - the one governing how images are previewed by a digital camera.

Even with the ITC's determination, however, Kodak's patent portfolio is substancial and provides holders the potential to block competitors from releasing new products - particularly  smartphones and tablets.

We wish Kodak the best come Monday.


I'd like to have your thoughts.

Best and Happy Movie Going!
Jim Lavorato