- From LexisNexis® Mealey’s™ Daily Legal News.
Bankrupt Eastman Kodak Co. on Dec. 19 filed a motion in the U.S. Bankruptcy Court for the Southern District of New York seeking authority to conduct a sale of its patent assets free and clear of all claims and interests (In Re: Eastman Kodak Company, No. 12-10202, Chapter 11, S.D. N.Y. Bkcy.).
Kodak filed for Chapter 11 bankruptcy on Jan. 19.
Kodak maintains that the authorization it seeks has already been granted in a conditional sale order and that the approval of the licensing of the company’s retained patents is in the best interests of the bankruptcy estate and the creditors.
Moreover, agreements Kodak has with various companies regarding the licensing of it patents are “fair and equitable,” and approving the continuation of those agreements is in the interests of the bankruptcy estate and the creditors, Kodak argues.
Kodak says it has reached an agreement with Intellectual Ventures Fund 83 LLC (IV) under which IV will pay Kodak $ 527 million for its patent assets, minus licensing fees. Furthermore, IV will pay FlashPoint Technology Inc., which has a licensing agreement with Kodak, $ 5 million to settle its claims against Kodak.
In order to resolve Apple Inc.’s ownership claims to disputed patents, Kodak will license the rights to the disputed patents to some licensees, and Apple will license its rights to other licensees. Kodak will sell certain assigned patents that are not disputed.
Apple and IV have entered into a separate agreement governing the ownership and allocation of the assigned patents between Apple and IV, and Kodak and Apple will release all infringement claims under each other’s intellectual property, according to Kodak’s motion.
Under the proposed patent sale agreement, Kodak says that it and Apple agree to dismiss their respective claims against each other related to the disputed patents.