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Post by logik360 on May 13, 2013 0:51:56 GMT -5
I have recently released a condensed version of my analysis of Kodak's remaining patents. SBG and BK have the findings. My findings also include a valuation matrix utilizing various assumptions on the number of patents and the value per patent. I will release a final version to the board as time allows. My research shows that kodak has a great many more patents than the 9,000 that has been frequently cited. My conservative estimates of active patents granted by the US, Japan, Europe, and WIPO puts the number between 19,000 and 25,000. Many here have expressed frustration as to why we do not know the precise number of patents that Kodak still possesses. It is not easy to track. I have spent many many hours and the aid of sophisticated software in my analysis and still an exact number is elusive. Kodak has a full time staff devoted to this. Clearly, only Kodak knows the exact number. In 2011, Kodak published its 2010 global sustainability annual report that many of you will find interesting. Among the many facts and figures you will find is this excerpt (page 26): "Today Kodak holds more than 20,000 U.S. patents"www.twosides.info:8080/content/rsPDF_187.pdfKeep in mind that when this statement was published Kodak had already sold its OLED patents to LG in 2009. The Carestream/Onyx deal had occurred way back in 2007. I can think of no other transactions that would have purged large numbers of patents. So discount the 1,100 sold in the KISS/DC transaction and you still have 18,900 - assuming you believe Kodak's own numbers.... which did not even include the foreign patents! Now since 2010/2011, some of the cited 20,000 patents have undoubtedly expired, but during the same time, more have also been added to the portfolio....and still more as each month passes. So how many patents does Kodak own? I don't know. But I do know that it's a hell of a lot more than 9,000!
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Post by it2012 on May 13, 2013 3:26:41 GMT -5
the link will work if you remove the "<br/>" at the end of the url
You are correct. Page 25 says 20,000 patents,
"Today Kodak holds more than 20,000 U.S. patents"
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Post by logik360 on May 13, 2013 6:40:24 GMT -5
Thanks IT. The link now works. I had to remove the hard return before the closing link syntax.
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Post by logik360 on May 13, 2013 9:28:28 GMT -5
This was published in 2004... Perez helped figure out how to pay for the transition -- mostly by reducing investment in film and laying off nearly a quarter of Kodak's 60,000 workforce. He has instilled a new discipline at the company that is speeding product development. And he is uncovering new uses for Kodak's 20,000 patents. "The intellectual property and knowhow is unbelievable in the company," he says. "There is no excuse not to succeed."www.businessweek.com/stories/2004-05-09/no-excuse-not-to-succeed
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Post by updated on May 13, 2013 9:31:41 GMT -5
This was published in 2004... Perez helped figure out how to pay for the transition -- mostly by reducing investment in film and laying off nearly a quarter of Kodak's 60,000 workforce. He has instilled a new discipline at the company that is speeding product development. And he is uncovering new uses for Kodak's 20,000 patents. "The intellectual property and knowhow is unbelievable in the company," he says. "There is no excuse not to succeed."www.businessweek.com/stories/2004-05-09/no-excuse-not-to-succeedlol - this is funnnnnnnnnnnnnnnnnnnnnnnnnnnnnnnny Logic, you made my day hahahhaha - There is not excuse not to LAUGH -
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Post by logik360 on May 13, 2013 9:45:36 GMT -5
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Post by logik360 on May 13, 2013 10:12:47 GMT -5
This was published in 1/31/2012. My numbers did not include patent applications. Kodak is like a Rubik’s Cube. Its corporate chart shows 120 foreign and domestic subsidiaries. It has three gargantuan business segments, R&D activities averaging $300-500 million per year in expense, 13,000 foreign patents and trademarks and pending registrations in 160 countries, and 8,900 U.S. patent and trademark registrations and applications. This case is about not only whether the sum of the parts are worth more than the whole, but whether some of the parts have any tangible value at all.
Trying to predict the value of nearly 23,000 patent and trademark registrations and applications is a monumental—if not entirely unfeasible—task in a chapter 11, particularly given the right of licensees to compel specific performance (see my IP in Bankruptcy Outline). And given Kodak’s accelerating losses through the past decade, one has to wonder whether a real buyer will ever emerge for Kodak or whether the patent trolls will pick it apart like rabid Orcs. In sum, Kodak’s footing in this chapter 11 seems as unsure as that of a Mississippi lawyer running to a Rochester court on a winter day. www.bankruptcylitigationblog.com/archives/342828-print.html
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Post by logik360 on May 13, 2013 10:19:22 GMT -5
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Post by logik360 on May 13, 2013 10:21:28 GMT -5
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Post by logik360 on May 13, 2013 10:24:39 GMT -5
This one was published in 2010. I guess Kodak just 'forgot'... I think that should be part of their mantra and part of their DNA. A company like Kodak forgot that it was an innovative company. It forgot that it had 25,000 patents in the world. It forgot that it was inventing things. It forgot it took materials science and imaging science and put them together and created unbelieveable products. It started thinking of itself only as a film company.
What that did is contain itself in a little yellow box. And it was much bigger than the yellow box. What they needed was some people from the outside to remind them, no you’re really about creating the box, creating new boxes and creating things that go inside the box. That’s what you’re about.www.toprankblog.com/2010/08/cmo-cowboy-jeffrey-hayzlett/
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Post by logik360 on May 13, 2013 10:27:00 GMT -5
Another one in 2010: Humbled but undeterred Hayzlett says, “we knew what we had was good, just like what you do is.”
Material science and imaging science is at the core of it: Three-quarters of the world's camera makers use technology from the company, which has 25,000 patents in its store: “They send us a cheque.
“It's so cold in Rochester we've got nothing else to do but invent things.”
But Hayzlett warms up to the campaign challenge, keen that staid Kodak doesn't take itself too seriously… and with an April 1 'aromatography' joke which helps ensure that.
The look and feel had to change, with a return to emphasising traditional values - such as being 'trustworthy, reliable, caring and human' - starting to act differently and “put stakes into the ground.
“You can't look cool and dress like Elmer Fudd,” he says.
“A brand is nothing but a promise to deliver.”www.gxpress.net/jobs-almost-over-for-hayzlett-but-what-would-george-have-done-cms-1138-printer
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Post by logik360 on May 13, 2013 10:33:12 GMT -5
Published in ANA Magazine April 2010 (page 7) Another big change at Kodak is the face of its workforce: 60 percent of the employees have been at the company for less than four years. Hayzlett gives them much of the credit for helping to reinvigorate the company. “We have 19 products that drive almost all of our revenue,” he notes. “All of those 19 products are either number one, two, or three in the marketplace, and half of them didn’t exist two years ago. And we have 25,000 patents in digital imaging. It’s been a great restart.”www.ana.net/news/getfile/15718ý
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Post by logik360 on May 13, 2013 11:08:15 GMT -5
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Post by logik360 on May 13, 2013 11:11:09 GMT -5
January 21, 2012: We all had them: times you reached for a camera to stop life for a second, to grab a memory. For decades, Kodak was the rock solid standard in photography and as the 131-year old company files for Chapter 11 bankruptcy, “Kodak moments” may be all that’s left of what was once one of the most powerful companies in the world. Kodak can’t compete let alone survive in this new world. The only thing keeping them alive is a trove of 11,000 patents, and even those don’t seem to be piquing anyone’s interest.techcrunch.com/2012/01/21/what-happened-to-kodaks-moment/
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Post by logik360 on May 13, 2013 11:12:44 GMT -5
June 23, 2011: Kodak has tenaciously protected its intellectual property. It has amassed 11,000 patents, more than 1,000 of them in digital imaging. The technology is a viewed as critical to the 131-year-old company's survival in the digital age.www.businessweek.com/ap/financialnews/D9O1S0Q82.htm
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Post by logik360 on May 13, 2013 11:14:22 GMT -5
October 17, 2011: NEW YORK (AP) — Eastman Kodak Co. said Sunday that it will license thousands of patents to Imax in a deal that will supply the troubled photography company with millions of dollars. A person familiar with the agreement, but not authorized to speak with the media, said the initial deal is worth tens of millions of dollars. The agreement includes additional payments if certain milestones are met, along with patent royalties, the person said. Rochester, New York-based Kodak has struggled in recent years as consumers shifted to digital cameras and away from traditional film. Investor fears about its finances sent its shares tumbling earlier this month, after the company hired Jones Day, one of the country's top bankruptcy and restructuring law firms, as an advisor. The 131-year-old company, which is credited with turning picture-taking into a hobby for the masses, insisted then that it had no intention of filing for bankruptcy protection. Under the agreement announced Sunday, Imax Co. will have exclusive use of Kodak's laser projection technology. The Kodak patents will allow Imax to provide high-quality digital content for theater screens larger than 80 feet and domed theaters for the first time. Screens that large had previously been limited to film content, the companies said. IMAX said it expects to introduce the new laser-projection technology by the second half of 2013. The agreement covers about 100 patents related to laser protection technology, along with certain digital cinema rights to about 10,000 of Kodak's 11,000 total patents, said the person familiar with the deal,The company has used its patents as a way to raise cash before. Since 2008, it's raised nearly $2 billion in licensing fees, and is hoping to sell another 1,100 digital-imaging patents. Some analysts have said that portfolio of patents could fetch $3 billion for Kodak. After four years of losses, Kodak has said that it expects to return to profitability next year on the strength of deep investments in digital inkjet printers. sg.news.yahoo.com/kodak-license-laser-projection-patents-imax-211916829.html
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Post by logik360 on May 13, 2013 11:20:25 GMT -5
October 6, 2011. At least 11,000 patents.... with a future 'pipeline': Along with a rich portfolio of 11,000 patents, "we have some very innovative product ideas in the pipeline," Baptiste said. "It's not fair to think of us as finished. I don't think we're down for the count, I really don't." www.semissourian.com/story/1770833.html
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Post by logik360 on May 13, 2013 13:44:59 GMT -5
According to the Intellectual Property Owners Association (IPO) Top 300 Patent Owners (U.S. Patents only), Kodak were granted the following number of patents for each respective year: 1994: 898 1995: 772 1996: 768 1997: 795 1998: 1,124 1999: 992 2000: 875 2001: 719 2002: 694 2003: 748 2004: 780 2005: 694 2006: 706 2007: 514 2008: 320 2009: 296 2010: 352 2011: 298 2012 - not available Total (1994-2011): 12,341 U.S. patents GRANTED www.ipo.org/index.php/publications/top-300-patent-owners/
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Post by gsxr1100 on May 13, 2013 14:52:48 GMT -5
Great work Logik !!! You are the official " Patent Detective " we all appreciate all you hard work!!
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Post by jerryfu on May 13, 2013 14:59:07 GMT -5
In the words from Leonardo C's Dr. Connors(catch me if you can). I concur!
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Post by logik360 on May 13, 2013 22:51:38 GMT -5
In reconciling the patent numbers, we can't forget about the 850 image sensor patents sold to Ominivision in March 2011. My analysis had already accounted for this transfer, but I wanted to remind those who might be keeping track of the 12,341 patents granted from 1994 to 2011 (according to IPO). Even if you were to assume some of the lowest tallies, Kodak's 13,000 or so foreign patents combined with its 9,000 or so US patents still represents a serious trove of some 22,000 patents! To show you just how ridiculous Kodak's POR was, consider the lowest possible valuation used in my analysis ($150,000 per patent) and then further cut it in half ($75,000) x 22,000 = $1.7B. An important sum considering where we are today.
Some here may think that the Ominivision deal was a bust for Kodak. 850 patents for the measly sum of $65M is a joke right? Just over $76,000 per patent. WRONG! It was a brilliant success. Kodak retained the rights to use this technology while still raking in $76,000 per patent! Here:
In connection with the Purchase, the Company has granted to Kodak world-wide, non-exclusive and royalty-free licenses, without the right to sublicense, to use the Purchased Patents to manufacture and sell current image-sensor products and other Kodak products incorporating image sensors. The Assignment Agreement contains additional representations, warranties and covenants by the parties.
To this day, some of this image sensor technology is used in cameras now manufactured and sold by Asia Optical under the JK Imaging ruse and the Kodak brand. Brilliant!
Even at an absurdly low price of $75,000 per patent and the conservative estimate of 22,000 or so remaining patents, Kodak's IP is still very important to the shareholders. The IP alone represents an undeniable hidden asset that in and of itself is the difference for common surviving.
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Post by logik360 on May 14, 2013 9:29:07 GMT -5
Take away the NOLs and this is what we have: "Total enterprise value = Value of IP (e.g. Kodak, Nortel)" The Opportunity for Financial Investors - Evolution of IP as an uncorrelated Asset
Financial Sector’s Interest was previously limited to securitizations of patent portfolio royalty streams and IP asset-backed loans (collateralizations )
IP has increased in profile recently in driving the enterprise value of M&A transactions and in distressed sales and bankruptcies
We now see significant growth in the rise of risk capital to support the monetization of IP as an uncorrelated, liquid asset in its own right.
- IP has started to achieve critical scale as an Investment-grade asset class
Litigation by NPEs is now 40% all of suits in the USA in 2011 ( WSJ– Nov 12, 2012)
High Profile Patent Purchases by NPEs ( Acacia, Coller, - $100 MM + Investments )
Next generation of IP monetization companies & IP teams with impressive track records
Licensing revenue is growing significantly year to year ( sustainable growth )
Significant year-on-year increase in the secondary trading of IP in terms of $$ & Volume
- IP offers Investors Diversification:
Private equity-like returns can be generated even when financial markets are not conducive to traditional exits ( “Income” vs. capital gains is key for leading alt. asset investors)
High-margin returns are possible whilst also providing downside protection
fordhamipconference.com/wp-content/uploads/2013/04/2013.holden.presentation.pdf
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Post by ezstock1 on May 14, 2013 9:47:17 GMT -5
Just wondering? Is it possible that some if not all of the patents related to DI and PI will transfer over to the UK pension fund as a necessary part of their ongoing business and no longer be owned by Kodak?
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Post by logik360 on May 14, 2013 9:57:21 GMT -5
Sure it is possible. All the more reason to demand an independent audit and valuation. If such a IP transfer occurs, then we must demand partial ownership of the new UK-deal.
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Post by logik360 on May 14, 2013 10:13:50 GMT -5
Some more IP "logik" for you: Here's another way of valuating Kodak's remaining patent portfolio. I'll call this the "Perez Model". Perez and others at Kodak have frequently reiterated that the KISS/DC patents represented non-core IP. We know that, but I'll still provide examples: "The company announced in July its intention to explore strategic alternatives for approximately 1,100 U.S. digital imaging patents, which represent about 10% of its patent portfolio and which are not core to its future."And this: "Regardless of the past problems associated with Kodak being driven into bankruptcy by bad business decisions, and the lackluster market for its patent portfolio, this $525 million deal will provide Kodak a way forward. The company says it will allow it to continue innovating in its core Commercial Imaging technologies, which it deems fundamental to its future. The company believes it has significant competitive advantages and strong growth prospects in the Commercial Imaging business, which is what made the patents sold palatable to lose. Kodak has always said the patents sold were non-core patents."So, we assume a value of $525M for 10% of Kodak's entire portfolio. Remember that 10% was NON-CORE . That places a conservative estimate of $4.7B for the remaining 90%, which is presumably CORE IP. In actuality, the value is much greater as Kodak stands at the precipice of multi-billion dollar industries with signed contracts in hand! In short, 90% of CORE assets are worth proportionately more than 10% of NON-CORE assets. BTW, the 'Perez Model' does not fully account for foreign patents and it entirely discounts the thousands of patent applications. Some references: securities.stanford.edu/1048/EKDKQ.PK00_01/2013123_r01c_12CV01073.pdfwww.ipwatchdog.com/2012/12/19/kodak-sells-patents-to-intellectual-ventures-rpx-for-525-million/id=31737/
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Post by updated on May 14, 2013 10:35:53 GMT -5
I hope all your hard work and DD pay off at the end there is still a hope but these people at Kodak cannot be trusted and I am glad Matt and others started to send letters and make noises You guys are great - Chapeau Bas
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Post by logik360 on May 14, 2013 21:09:12 GMT -5
The number of patents listed in docket 887 (13,613 patents) is not all-inclusive. The numbers cited in article below, as well as the referenced affidavit, are very close to those derived from my independent analysis - around 9,000 US patents and 13,000 foreign patents. Clearly, games are being played with Kodak's assets and their valuations. Posted on January 19, 2012 by Mark B. Conlan IP and Chapter 11 Intersection: Kodak Files for Bankruptcy As anticipated, Eastman Kodak Co. filed a petition for Chapter 11 bankruptcy relief this morning in the United States Bankruptcy Court for the Southern District of New York. This development followed a recent flurry of patent infringement suits involving Kodak, and on the heels of Kodak’s unrequited efforts to license or sell off its substantial intellectual property (“IP”) portfolio. Kodak recounted in its supporting affidavit its path of decline over recent years, citing, among other factors, liquidity challenges precipitated by difficulties collecting licensing fees from infringers of its intellectual property. The affidavit indicates that Kodak’s IP portfolio comprises nearly 9,000 U.S. patent and trademark registrations and applications, and over 13,000 foreign patents and trademarks registrations and applications. Thus, a critical component of its reorganization strategy is the sale of approximately 1,150 digital imaging patents. The patent portfolio has an estimated value of $2.2 to $2.6 billion, according to Kodak’s financing motion filed today. Kodak’s agreement with its lender, Citigroup, sets a June 30, 2012 deadline for Kodak to file a bidding procedures motion with the court with respect to the patent sale. Between 2003 and 2010, Kodak generated approximately $450 million annually of licensing revenue from its digital-imaging patents. Last year, revenues shrank to $98 million. According to Kodak, the drop resulted largely from “infringers” employing a “strategy of delay in light of Kodak’s liquidity position.” Nevertheless, the digital-imaging portfolio is sure to generate significant interest. Readers should recall that last July, Nortel sold its patent portfolio in a bankruptcy auction. The sale of approximately 6,000 patents, including approximately 2,600 U.S. patents, yielded $4.5 billion in proceeds. According to one observer, Nortel represented the biggest skirmish to date in “a global commercial war being waged” wherein “patents have become the new lethal weaponry.” www.iplawalert.com/articles/licensing/
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