130 year old Kodak filed for Chapter 11 bankruptcy protection on Wednesday in a effort to keep the company afloat. The camera and digital imaging company also landed a US$950 loan from Citibank to continue paying employees and creditors.
Kodak executives said the company can continue operating during its Chapter 11 restructuring.
Kodak files for bankruptcy protection
The digital camera industry killed Kodak’s film business, forcing the company to look to other markets for revenue. Ironically, Kodak is the company that invented digital photography.
Kodak has been selling off its patents to raise cash, and company CEO Antonio Perez said, “Kodak is taking a significant step toward enabling our enterprise to complete its transformation.”
Chapter 11 gives us the best opportunities to maximize the value in two critical parts of our technology portfolio: our digital capture patents, which are essential for a wide range of mobile and other consumer electronic devices that capture digital images and have generated over $3 billion of licensing revenues since 2003; and our breakthrough printing and deposition technologies, which give Kodak a competitive advantage in our growing digital businesses.
Kodak has also been leveraging its patents in court battles to bring in new licensing fees, although that hasn’t always worked to the company’s advantage. In January 2011 an ITC judge ruled that one of the company’s digital imaging patents was invalid, throwing a wrench in a patent fight with Apple and RIM.
Kodak continued to pursue its patent infringement lawsuit against Apple and RIM with Mr. Perez saying “Kodak deserves to win.”
The company filed a new patent infringement suit against Apple in January 2012 alleging that the iPhone, iPad and iPod touch infringe on digital imaging patents it owns.
Kodak plans to continue pursuing its patent cases during bankruptcy.