This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kodak to License Patents to Imax

By Bree Fowler

NEW YORK -- Eastman Kodak Co. (EK) said Sunday that it will license thousands of patents to Imax (IMAX) in a deal that will supply the troubled photography company with millions of dollars.

A person familiar with the agreement, but not authorized to speak with the media, said the initial deal is worth tens of millions of dollars. The agreement includes additional payments if certain milestones are met, along with patent royalties, the person said.

Rochester, N.Y.-based Kodak has struggled in recent years as consumers shifted to digital cameras and away from traditional film. Investor fears about its finances sent its shares tumbling earlier this month, after the company hired Jones Day, one of the country's top bankruptcy and restructuring law firms, as an adviser.

> > Bull or Bear? Vote in Our Poll

The 131-year-old company, which is credited with turning picture-taking into a hobby for the masses, insisted then that it had no intention of filing for bankruptcy protection.

Under the agreement announced Sunday, Imax Co. will have exclusive use of Kodak's laser projection technology. The Kodak patents will allow Imax to provide high-quality digital content for theater screens larger than 80 feet and domed theaters for the first time. Screens that large had previously been limited to film content, the companies said.

IMAX said it expects to introduce the new laser-projection technology by the second half of 2013.

The agreement covers about 100 patents related to laser protection technology, along with certain digital cinema rights to about 10,000 of Kodak's 11,000 total patents, said the person familiar with the deal,

The company has used its patents as a way to raise cash before. Since 2008, it's raised nearly $2 billion in licensing fees, and is hoping to sell another 1,100 digital-imaging patents. Some analysts have said that portfolio of patents could fetch $3 billion for Kodak.

After four years of losses, Kodak has said that it expects to return to profitability next year on the strength of deep investments in digital inkjet printers.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $131.29 -0.57%
FB $80.55 0.00%
GOOG $539.79 0.00%
TSLA $247.00 -0.17%
YHOO $43.38 0.00%

Markets

DOW 18,162.99 +121.45 0.67%
S&P 500 2,123.48 +19.28 0.92%
NASDAQ 5,106.5930 +73.8420 1.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs