American technology companies Apple and Google are reportedly teaming up to bid for 1,100 imaging patents held by Eastman Kodak Company.
"The two companies, competing for dominance of the smartphone market, have partnered after leading two separate groups this summer to buy some of Kodak's 1,100 imaging patents," said people, who asked not to be identified because the process is private, Bloomberg reported.
The reported partnership between Apple and Google is not seen as a surprise to people familiar with technology business because similar deals were formed by Apple, Microsoft and RIM (Research in Motion) last year together bought Nortel Networks Corp's 6000 plus patents for $4.5 billion.
"Apple and Google learned a lesson from the Nortel's auction," said Richard Ehrlickman, former vice president of Intellectual Property at International Business Machines Corp. and president of IP Offerings, a patent brokerage and consulting company in Boca Raton, Florida.
He further said, "They have decided to come together in this process to reduce the cost of purchasing the Kodak patents, while meeting their business needs.", Bloomberg reported.
It is reported that Kodak obtained $830 million exit financing last month with a commitment that patents would most probably sell at least for $500 million.
The reported bid of more than $500 million for the Kodak patents is expected to bring some relief to the photography company which is reeling under severe cash crunch ever since the company filed for bankruptcy in January this year.
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