Kodak Agrees to License Some of its Patents to IMAX

October 17 00:00 2011

New York, October 17 (RainbowNewsLine.com) – In an effort to turn its fortunes around, Eastman Kodak has agreed to license some of its patents to IMAX Corporation. This was announced on Sunday, two days after Kodak faced another lawsuit by Fujifilm accusing it of infringing upon four digital imaging patents. Kodak has been reeling under a barrage of challenges related to intellectual property.

The deal between Kodak and IMAX will provide IMAX with about 100 patents licenses regarding laser-projection technology and the use of a broader spectrum of Kodak patents that are used in its giant-screen movie theaters. On its part, IMAX will pay Kodak less than $550 million in upfront fees as also additional royalties.

Richard L. Gelfond, IMAX’s chief executive, said in a statement that “This Kodak intellectual property is truly cutting edge, and will be used by IMAX’s esteemed technology group to enhance the cinematic experience for consumers, enable the application of digital technology in our larger and institutional theatres, and make being in business with IMAX even easier and more profitable.”

Having posted only one annual profit since 2004 and being under tremendous pressure to reinvent itself, Kodak has been trying hard to sell about 1,100 digital imaging patents. The IMAX deal could not have come at a more opportune time.