The value of Kodak's 1,100 digital imaging patents is contingent upon several factors:
1. How will the infringement action turn out? Kodak is preparing to file for bankruptcy early this year. According to a recent Wall Street Journal report, Kodak wants $1 billion in debtor-in possession financing, which keeps companies operating during a major reorganization. And to get that, Kodak would sell its digital imaging patents. While several companies have been interested in buying the patents, rethink-wireless.com reports, Kodak’s infringement suits against Apple and RIM have been slowing down the process. Potential buyers are waiting for a decision by the US International Trade Commission before valuing the patents.
2. What is the value of the patents if they are sold to prevent Kodak from filing for bankruptcy?
3. What is the value of the patents if Kodak first seeks protection from a bankruptcy filing before selling the patents?
Though it appears immediate continuation of the company will requiremonetizing the patents, valuation of the company depends uponmanagement's strategic plans to use the proceeds, about which little is being said.