InterDigital's patent sale efforts have a bigger relevance for struggling tech giants, who expect to fund turnaround efforts through similar sales and licensing cash, but may find problems if licensing agreements and litigation diminishes the value of portfolios.
"I believe the value is reduced by encumbrances. I think that is also weighing heavily on the Kodak patent sale," says Erlickman. InterDigital's M&A efforts have coincided with a similar effort by Kodak. However, after failing to sell patents at the end of 2011, Kodak is now conducting those sales in courts after filing a Chapter 11 bankruptcy earlier in the year, amid a cash crunch.
Earlier in June, Kodak said it has signed confidentiality agreements with 20 parties on the sale of its 1,100 patent strong portfolio of intellectual property related to digital photos and imaging services. The company also said it has generated over $3 billion from licensing digital imaging patents from smartphone makers like Samsung, LG and Motorola Mobility. Separately, Kodak is also litigating patents with Apple (AAPl), HTC and Research In Motion.
Kodak's efforts, taken with InterDigital's Monday deal have a broader relevance for IP rich but strategically slumping tech giants. "Investors can and should read from the success of