14 DAY TRIAL // Kodak and LG announced not one but two agreements that would effectively end the patent litigation, which has been going on since earlier this year, involving a subset of their imaging technologies. The two agreements include Kodak's decision to sell all assets of its OLED business to LG, as well as signing a full cross-patent agreement, which will effectively grant both parties access to the other's substantial patent portfolios.
“As we said earlier this year, OLED is one of the businesses we wanted to reposition to maximize Kodak’s competitive advantage at the intersection of materials and imaging science,” Laura G. Quatela, Kodak’s chief intellectual property officer and manager of the company’s OLED business, said. “This action is consistent with that strategy. Our OLED intellectual property portfolio is fundamental; however, realizing the full value of this business would have required significant investment.”
Kodak devised its first OLED display back in the 1970s and will continue to have access to the OLED technology, in case it wishes to use it in its products, even after the business transaction is concluded. However, with the development and research concerns regarding the OLED technology out of the way, Kodak will be able to focus more on the other aspects of its business, effectively allowing for higher business efficiency and improving the chances for increased profits.
LG, on the other hand, will be able to implement any OLED feature into its upcoming products and, per the cross-patent pact, it will also have the right to any other technology developed by its partner. Although financial details remain undisclosed, the pact is royalty-bearing to Kodak, which will also be utilizing LG's patents in its future research and development operations.
“We are pleased to have reached a mutually beneficial arrangement that advances the interests of Kodak and LG and validates the strength of Kodak’s intellectual property portfolio,” Laura G. Quatela added.
The OLED deal will close by the end of the year and, in tune with the cross-patent agreements, both Kodak and LG will request in front of the U.S. International Trade Commission that the aforementioned litigation investigations be dropped.