Kodak Licenses Laser Projection Patents to IMAX

October 17 00:00 2011

NEW YORK, October 17 (RainbowNewsLine.com) – Eastman Kodak Co (NYSE: EK) has agreed to provide Laser Projection Patents to Canadian Entertainment and Technology Company IMAX Corp (NYSE: IMAX) which will fetch millions of dollar to the troubled photography company.

In recent years, New York based Kodak has struggled because of the shift from traditional film to digital filming. Kodak is pressured by the bondholders to use proceeds from assets sale to write off the debts. The investors’ fear that the weak financials of the company has caused the share prices to go down significantly earlier this month. According to the company, they did not intend to file for bankruptcy protection, however after four year of losses Kodak expects to return to profitability in next year based on their investments in digital inkjet printers.

According to the agreement, IMAX will have exclusive rights to use Kodak’s Laser projection technology. The deal will allow IMAX to provide high quality digital content on theater screens. This ten-year deal will fetch Kodak $10 million as upfront payment, as well as milestone payments and ongoing royalties. The sales of patents are a way for the company to raise money, and have already gained $2 billion since 2008 as licensing fees. The company plans to sell its 110 digital imaging patents more, and analyst believes such portfolio of patents could fetch $3 billion for Kodak.