Eastman Kodak Company (Kodak) has obtained approval from the bankruptcy court to conduct an auction to sell its Digital Capture and Kodak Imaging Systems and Services (KISS) patent portfolios. Kodak’s motion was contested by Apple and FlashPoint Technologies. They asserted “ownership” interests in a small number of the 1,100 patents in the portfolios.
Kodak is selling the patents under section 363 of the U.S. Bankruptcy Code which permits a sale free and clear of any adverse claim or interest. The bankruptcy court will oversee the sale of the patents. At closing, the winning bidder can obtain an order of the bankruptcy court that protects it against any third-party ownership claims.
The bankruptcy court’s ruling provides a path to separate the auction process from continuing litigation about the Apple and Flashpoint claims.