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Post by forkodak on Dec 19, 2012 8:44:06 GMT -5
Kodak Announces Sale of Patents Consortium organized by Intellectual Ventures and RPX Corporation to pay approximately $525 million for purchase and licenses of patents Builds on Kodak’s momentum toward a successful emergence in the first half of 2013 investor.kodak.com/secfiling.cfm?filingid=1193125-12-507443
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Post by forkodak on Dec 19, 2012 8:50:06 GMT -5
Settle current patent related litigation -- Settle for money? "The transaction also includes an agreement to settle current patent-related litigation between the participants and Kodak, which avoids additional litigation costs and helps to ensure that management and the company’s resources focus on enhancing the operations of its core future businesses. "
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Post by forkodak on Dec 19, 2012 8:56:14 GMT -5
Currently there is the ITC case 377-831 so is that concluded and included in the ~$500 million or not? Currently there is the 12-1588 or the 218 case is that included in the ~$500 million or not? Or is there a settlement where Kodak will collect additional money from parties on these two cases?
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Post by onoudidint on Dec 19, 2012 8:58:17 GMT -5
dont worry AP knows what to do !
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Post by forkodak on Dec 19, 2012 9:02:17 GMT -5
SEC filing does not seem clear, leaves questions. It implies settlement of cases that involve money larger than sale of portfolio; something does not add... Is there additional settlement money or not and how much? ...
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Post by forkodak on Dec 19, 2012 9:12:11 GMT -5
Like on 218 Kodak says it is owed 1 billion in back infringement and Apple says they made the patent and it is not valid -- how do they come to a settlement? Flip a coin on who owns the patent and then average it for a payout of a half a billion... to the winner of the coin flip??
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Post by logik360 on Dec 19, 2012 9:12:53 GMT -5
This is Kodak's typical MO and many here speculated that this would occur (i.e. that the patent sale would be accompanied by one or more infringement settlements). But the key here, as you said, for how much? In typical fashion, the financial details of this agreement have not yet been disclosed. Kodak needed cash - hopefully that is what it got with the litigation "settlement". God help us if this settlement or the patent deal also involves yet another "royalty-bearing to Kodak" arrangement - all of which have been less than fruitful.
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Post by youseekyoda on Dec 19, 2012 9:13:21 GMT -5
That is not clear indeed. One thought I had is, the $525 Mil sales of the patents is taxable as an asset sale where I believe Kodak shows zero value on the book meaning it is all taxable.
Now, if they have some additional moneys coming in to settle litigation, I do not believe that is taxable so, a smart way to structure this is for Kodak to take a lower Patent amount and a higher litigation settlement amount as the tax footprint would be smaller, Kodak would realize more proceeds and use less NOL credits to offset the taxable asset sales
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