Apple, Google team up to buy Kodak patents for over $500 mn: report

Global smartphone giant Apple Inc and leading internet company Google Inc have teamed up to acquire a stash of patents worth over $500 million from bankrupt US photographic and imaging icon Eastman Kodak Co, according to a Bloomberg report over the weekend.

After forming two rival groups in summer to buy Kodak's patent portfolio comprising around 1,100 imaging patents, the groups have now joined hands to buy it.

According to Bloomberg sources, when the bidding first started there were two separate groups led by Apple and Google. The Apple-led team included software giant Microsoft and patent holding company Intellectual Ventures LLC, while Google had a number of Asian mobile handset makers in its group.

According to some analysts, unusual business alliances are typical in patent sales because they allow rivals to avoid potential patent related disputes in future. Earlier this year, the US department of justice cleared a massive $4.5-billion patent purchase by technology giants Apple, Microsoft and Research in Motion from Nortel Networks Corp.

Last week, The Wall Street Journal reported that Kodak has been offered more than $500 million for its digital imaging patents from unconfirmed bidders, probably from the Silicon Valley. (See: Kodak receives $500 million plus offer for some patents: report) 

The 132-year old Kodak, the once-dominant photographic icon, filed for chapter 11 bankruptcy protection in January 2012 with a debt of 6.75 billion and assets worth $5.1 billion. The company is expected to exit bankruptcy in the first half of 2013.