“After hours on Tuesday, July 19, Apple (AAPL) announced quarterly results that included about $76 billion dollars in cash. Part of this money is probably partially to be spent ramping up the iPhone 5’s manufacturing, distribution and marketing, but it is likely that a great deal of that cash should still remain in the coffer,” Zvi Bar writes for Seeking Alpha. “While Apple could use that money to buy a large rival, that does not sound like Apple’s style. But Apple may spend a little of it buying patents, and I think Apple should buy Eastman Kodak’s.”
“On Monday, July 18, The International Trade Commission (ITC) upheld a lower decision that Kodak did not infringe Apple patents regarding digital camera technology,” Bar writes. “The ITC is still considering Kodak’s claims against Apple and Research in Motion, filed in January of 2010, complaining that the iPhone and some Blackberrys infringe on a Kodak patent for viewing images. Kodak settled similar patent disputes with LG Electronics Inc in 2009, and Samsung in 2010. At the end of June, the ITC affirmed in part, reversed in part and remanded in part, Kodak’s patent infringement claim. These remaining ‘royalty obligations’ could each be worth several hundred million dollars, or more, based on the values from the prior disputes.”
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Bar writes, “Lawsuits costs Apple money to litigate and appeal, and purchasing Kodak could not only end one annoyance, but also give them an additional weapon in future patent litigation. Future claims between operating system makers and also between device manufacturers will only increase in value, and continued confrontation is likely… Yesterday, Kodak stated that it is looking into the sale of over 1,000 digital-imaging patents to raise money for operations, and noting this IP interest. Presently, Kodak is valued at under $650 million, is not profitable and has been in decline. A would-be buyer of Kodak’s Patents may want the whole company, especially if it could buy the two at a comparable price.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline Maisel” for the heads up.]
Related articles:
ITC declines to review Apple-Kodak patent decision – July 19, 2011
Kodak plummets 19% as suit against Apple, RIM remanded to judge – June 30, 2011
Eastman Kodak v. Apple and RIM: target date for ITC decision postponed by one week – June 23, 2011
Apple, RIM: A win by Kodak could mean $1B settlement, says analyst – June 23, 2011
U.S. ITC judge rules against Apple in Kodak patent infringement case – May 12, 2011
Kodak wins round as ITC to review $1 billion Apple, RIM patent dispute – March 26, 2011
U.S. ITC ruling derails Kodak’s quest for royalties from Apple, RIM – January 24, 2011
Apple files patent infringement lawsuit against Kodak – April 19, 2010
U.S. ITC to probe Apple iPhones, RIM Blackberries after Kodak alleges patent infringement – February 17, 2010
Kodak sues Apple and RIM over image preview patents – January 14, 2010
What happened to you Kodak?
You used to be so cool.
Kodak is an iconic institution. Kodak’s IP as a leader and pioneer in the photographic world is not only significant but also very importantly still relevant as evidenced by the fact that Apple has been using it in it’s current products.
The iphone’s camera is a great camera and has broken new technological grounds in it’s photographic capabilities and technology. One thing for sue that we can count on in every new iPhone model is the improvement and enhanced features and capabilities of it’s camera, which is already pretty incredible and brings new innovation to the field.
There is every reason to assume that Kodak’s related IP can be of value to Apple, both for future use and also for dominance and exclusive ownership.
It would aso be rather fitting that Apple saves Kodak from extinction by integrating it into Apple. Maybe one day Apple will even spin off a photographic division…?
No no photographic chemicals and film are so out of date. Apple does not need to dabble in that. Apple needs to buy an 8-track tape company. Because you have never heard the songs “Car wash” and “Superfly” until you have heard them on 8-track.
just my $0.02
The ignorance on this forum is staggering. You are obviously oblivious to the fact that Kodak has a huge cache of digital imaging patents and that its CCD chips – the heart of a digital camera – are widely regarded as among the best in the world. It would make tremendous sense for Apple to buy Kodak, take ownership of the patents, spin off the imaging company and give it a limited license to use the IP. In such a deal (and after an IPO), Apple might end up with the patents for next to nothing.
The condescension on this forum is staggering. You are obviously oblivious to the fact that some people in this world have personality and a sense of humor. Some people actually enjoy this forum BECAUSE of the colorful takes and not just to sit at the feet of patronizing, pseudo-intellectual know-it-alls like you. Ramiuseng actually made some of us laugh, whereas your boring regurgitation just stole 30 seconds of our life that we’ll never get back.
@ Pocketrash
The condescension on this forum is staggering. You are obviously oblivious to the fact that some people in this world have personality and a sense of humor. Some people actually enjoy this forum BECAUSE of the colorful takes and not just to sit at the feet of patronizing, pseudo-intellectual know-it-alls like you.
Ralph M actually reminded me that Kodak make the chip in the hugely expensive 35mm-format digital Leica M8 and M9, whereas your boring regurgitation of the clichéd “..just stole 30 seconds of our life that we’ll never get back..” shows your paucity of wit, knee-jerk aggression, and really silly attitude to others.
Grow up, darling..
@ skydiver,
Pocket trash informed me of the time I lost due patronizing comments with no personality, while you just confused me by quoting the previous post without inserting quotation marks to guide me to your response.. Shame on you!
@Pockettrash: get a life. The internet is better off without ignorant people publicly amusing themselves. ramiuseng was not colorful, he was judgmental and went pretty far off subject. If you guys want to play Beavis and Butthead, do it on your own forum.
I like tacos.
Buy Kodak, Buy MMI. Leave nothing for Google.
Sometimes, it’s best to acquire something in order to keep it out of the hands of someone less competent.
Just saying…
This is exactly why Apple piled cash for years: they new opportunities like this would come around. The are in an enviable position. You have to love the way the company has been run since Jobs came back.
“…Apple may spend a little of it buying patents, and I think Apple should buy Eastman Kodak’s.” Zvi Bar writes for Seeking Alpha.
And / or, may I add, Fuji Film.
Kodak / Eastman may have more patents, but Fuji was / is the best film on the planet. Un-friggin’ believable color saturation.
Fuji film = ‘primo’ prints
Dunno…I smell “anti-trust” action if Apple were to acquire Kodak’s patents and/or existing imaging business.
And in that legal realm, perception (by those making/enforcing anti-trust rules) is quite a powerful force.
fandango – Fuji fanboy much?
In many world markets, before the rise of digital, Kodak was the standard. Folks would use the local film, including Fuji, for everyday photographs. Kodak was for recording the important events in life.
Zvi Bar guy know a little about corporate finances, since these $76 billion have no relation to production of iPhone 5 or whatever. These money are declared as net profit, while production is already accounted as part of expenses. Whatever Apple liked to invest in production is already subtracted and can not lie within profits.
(Of course, some huge, multi-billion pre-pay long term deals can be occasionally paid prom these undistributed profits, but it is due to Board of Directors to approval.)
so this new spaceship they are going to build is making sense.
Apple, Kodak, Hulu, …etc etc will all reside within
China, Ipad hd/pro, iphone 5, prepaid,
Icloud
Apple TV
Love the comment about “just scratching the surface” in China.
More upside revisions coming, etc etc.
Lets see what aapl can do.
im long
Cheers
I am sure the Kodak patent portfolio has real value, but what would be done with and for the existing 18,000 or so employees?
I don’t think an acquisition of Kodak is a very good idea.
The patents, yes. The company? An albatross with many liabilities. Apple doesn’t need the headaches.
@ Raymond: Indeed Kodak has some baggage, but the company may be an excellent opportunity for Apple. Based on horrible recent revenues, the market has already discounted EK stock significantly. Kodak, quite simply, was too slow to switch from analog to digital, spent a lot of money doing it, and it engaged itself in alliances that have not worked well. The result is a company rich in product and talent, but poor in cash and market share. If Apple was to invest, then some very strategic and lucrative imaging, printing, and video products could quickly be put back on track. Wouldn’t the return of Apple printers be interesting? How about professional cameras that interface even more effectively with Final Cut Pro? How about Apple improving the Kodak Gallery and more seamlessly mating it with iPhoto and Aperture? There are some good possibilities here…
I worked for Kodak. Apple DOES NOT want to buy Kodak. The company is now a barely glowing ember of what was once a brilliant company. They were destroyed by Marketing-As-Management as well as with a self-destructive work culture to go with it. Stay the hell away Apple.
If Kodak still had the knack for creating or innovating anything, I’d comment otherwise.
Buying off Kodak’s software patents may be worth some money, but not much.
The Eastman company is famous in the video / film industries. I wonder if buying Kodak gets them this part too.