Apple & Google are competitors in smartphone market but to acquire Eastman Kodak Co.’s patents out of bankruptcy, both have joined hands, reveal people close to the matter. Both the leaders have teamed up this summer to get approx. Kodak’s 1100 imaging patents, uttered the sources, who are not supposed to come in public as the matter is confidential. It is unusual to see partnerships or joint acquisition in patent matters as they enable competitors to neutralize potential infringement litigation. Also Microsoft Corp and Research in Motion Ltd. got Nortel Networks Corp’s patents which accounted to 6,000 patents at $4.5 billion last year. Google failed the bid in auction for these patents after an offering of $900 million.
Former VP of Intellectual Property at International Business Machines Corp. and president of IP offerings in a patent brokerage and consulting company in Boca Raton, Florida – Richard Ehrlickman revealed that Apple and Google have learned a lesson from that Nortel’s deal. Therefore both these giants have teamed up in this Kodak’s patent acquisition so that stretching the costs lower would be possible for them and they can buy the Kodak patents to suffice their business requirements.
Currently none of the companies comment on this report but sources says that only $500 million is triggered to get the entire bundle of Kodak’s patents. These patents include capture, manipulation and sharing of digital images. Now Kodak’s plans are to shrink the firm and lower its focus on photography and accelerate more on commercial, functional printing, packaging and enterprise services. Court docs reveal that Kodak suggests that its patents value $2.21 billion to $2.27 billion, as per estimated figure availed from a patent advisory firm. More, Kodak reveals that it did make more than $3 billion as revenues when it licensed some of its digital imaging patents to users including Samsung, Google’s Motorola Mobility and Nokia Oyj. Further reports will reveal how this deal is closed.