Though the motion was contested by Apple and FlashPoint Technologies, Eastman Kodak Company has obtained the required approval from the Bankruptcy Court to conduct an auction to sell its Digital Capture and Kodak Imaging Systems and Services (KISS) patent portfolios.
In a press release, Kodak mentioned that Apple and Flashpoint had asserted “ownership” interests in a small number of the 1,100 patents in the portfolios. The Bankruptcy Court, however, found that all of the patents in the Digital Capture and KISS patent portfolios are a property of Kodak’s estate. Accordingly, the Court granted Kodak the right to sell these patents free and clear of Apple and FlashPoint’s claims at the auction, 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 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.