Embattled imaging and photographic firm Eastman Kodak Company has finally announced the completion of a series of agreements that successfully monetizes its digital imaging patents.

Under the terms of these agreements, Kodak will receive around $525 million for its patent portfolio. A portion of this some total will be paid by 12 intellectual property licensees organised by patent licensing firm Intellectual Ventures (IV) and the other part will be covered by patent risk management provider RPX Corporation. Each of the 12 licensees will receive rights with respect to the digital imaging patent portfolio as well as certain other Kodak patents.  

Apple and Google recently joined forces to submit a joint bid for Kodak’s patents. Although the names of the 12 patent licensees were not revealed in the announcement, the Cupertino-based tech outfit reportedly backed IV along with Microsoft, whilst RPX Corp had the support of a consortium that includes Google, LG, and HTC. Some of the other licensees reportedly include Samsung, Facebook, Adobe, as well as Kindle-maker Amazon.  

Transaction further settles all outstanding patent litigation

Besides boosting Kodak’s cash reserves, the patent acquisition deal also includes an agreement to settle current patent-related litigation between some of the participants (12 licensees) and Kodak.

Kodak put 1100 imaging patents up for sale after filing for Chapter 11 bankruptcy protection at the beginning of this year. The company now expects operations to return to normal within the first half of 2013, due to its restructuring operations, as well as this patent sale.

“This monetization of patents is another major milestone toward successful emergence,” said Kodak chairman and CEO Antonio M. Perez.

“Our progress has accelerated over the past several weeks as we prepare to emerge as a strong, sustainable company. This proposed transaction enables Kodak to repay a substantial amount of our initial DIP loan, satisfy a key condition for our new financing facility, and position our Commercial Imaging business for further growth and success,” Perez concluded.