Apple joins hands with Google to bid for over $500 million Kodak patents
Apple Inc. and Google Inc. came together to offer more than $500 million to buy Eastman Kodak Co. (EKDKQ)’s patents out of bankruptcy.
Why Apple and Google came together despite being competitors?
- Despite being competitors in the smartphone market, the two companies have joined hands in order to reduce the individual cost of purchasing the Kodak patents, while fulfilling their business requirements.
- These kinds of partnerships in patent sales are very typical because they allow competitors to neutralize potential infringement litigation.
Companies in Apple-led group: Microsoft and Intellectual Ventures Management LLC
Companies in Google-led group: RPX Corp. and Asian makers of Google’s Android phones. The two groups had separately offered less than $500 million for Kodak’s portfolio.
Why Kodak is its selling patents?
- Kodak which sought protection under Chapter 11, is selling patents to fund a turnaround.
- It is also following a plan to shrink the company and focus less on photography and more on commercial, packaging and functional printing and enterprise services.
- The company showed $5.1 billion in assets and $6.75 billion in debt in its bankruptcy filing. It plans to exit bankruptcy in the first half of 2013.