Kodak won an approval from the Bankruptcy Court earlier this week to auction its patent portfolios. Both Apple and FlashPoint have previously asserted ownership of a few of Kodak’s 1,100 patents, however, the Bankruptcy Court has finally ruled that all of the patents found in its patent portfolios are of Kodak’s.
Additionally, Kodak has been granted by the court the right to sell its patents, subject to the applicable provisions of the U.S. Bankruptcy Code. Kodak is selling the patents under section 363 of the U.S. Bankruptcy Code which permits a sale free and clear of any adverse claim or interest. The patents will be sold in a fair, competitive process overseen by the Bankruptcy Court.
At closing, the winning bidder can obtain an order of the Bankruptcy Court that protects it against any third-party ownership claims. “We are gratified that the Court has enabled us to move ahead with our patent auction in a timely manner and with clarity on ownership for the winning buyer,” Kodak Vice President Timothy Lynch said. The auction will be held sometime in August.