Kodak to sell off patents

digital camera in 1975 and developed the photo technology inside most cellphones and digital devices, is in the midst of the worst crisis in its 131-year history, The Wall Street Journal writes.

Now, caught between ruin and revival, Eastman Kodak is reaching ever more deeply into its intellectual treasure chest, betting that a big cash infusion from the sale of 1 100 digital-imaging inventions will see it through a transition that has raised the spectre of bankruptcy.

According to Tech Blorge, there has been some speculation the company could receive up to $5 billion for its intellectual property; others caution the sale will actually be much lower. However, many companies are buying up patents for protection.

For instance, a consortium of companies including Apple, Microsoft and RIM purchased 6 000 Nortel patents for $4.5 billion, and Google is purchasing Motorola for its patents for $12.5 billion. Are Kodak's 1 100 patents worth as much as Nortel's patents or Motorola's? Only the market can decide that.

FT.com also reports that Imax, the Canadian cinema technology group, has struck an exclusive licensing deal for more than 10 000 projection patents from Eastman Kodak, which will allow it to improve the quality of 2D and 3D screenings and convert its largest screens from film to digital content for the first time.

Neither Imax nor Kodak would disclose financial details, but their agreement could provide much-needed cash to the US group. The deal is understood to be worth tens of millions of dollars, according to one person familiar with the agreement.