Kodak sells its imaging patents for $525M

At the center of the group buying the digital imaging patents is Intellectual Ventures. The deal also would resolve patent-related litigation.

Eastman Kodak has a buyer for its coveted treasure trove of digital imaging patents.

Under the agreements announced today,Kodak is selling the bundle for approximately $525 million, part of which will be paid by 12 intellectual property licensees organized by Intellectual Ventures and RPX Corp. Each licensee will receive rights to the patent portfolio and certain other Kodak patents. Another portion will be paid by Intellectual Ventures, which is acquiring the digital imaging patent portfolio subject to these new licenses, as well as previously existing licenses, Kodak said.

San Francisco-based patent aggregator RPX counts Google, Microsoft, Samsung, and Research In Motion among its clients.

The deal also includes an agreement to settle patent-related litigation between the participants and Kodak.

Kodak has been working through bankruptcy proceedings during 2012, having filed for Chapter 11 protection in January. A stipulation of the $950 million loan it received from Citigroup to stay in business required it to sell off some of its intellectual property.

"This monetization of patents is another major milestone toward successful emergence" from the restructuring, Antonio M. Perez, Kodak's chairman and CEO, said in a statement. "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."

The proposed transaction is subject to the approval of the bankruptcy court and other conditions.

We've reached out to Kodak for further comment and will update this story when we hear back