Kodak Gets Permission to Sell Assets in Bankruptcy Auction

Kodak got both good and bad news from a bankruptcy judge earlier this week when they got permission to sell off some of their patents later this summer, but the Judge Allan Gropper declined to rule on a patent dispute with Apple.

Kodak was faced with economic adversity and retained a bankruptcy attorney after failing to capitalize on the growing digital photography market. The company is a pioneer in the photography world and made most of their money from film and developing.

Kodak hoped to sell a majority of its 1,000 patents, worth an estimated $2 billion in order to go through a structure bankruptcy, but the dispute with Apple will affect their ability to raise money.

Although they are able to sell the patents, they have to inform potential investors that Apple may have a financial stake in 10 of those patents. Kodak’s other option is to place funds in an escrow account that would go to Apple if they win the patent dispute.

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