A highly anticipated auction of Kodak patents has failed to get expected results from buyers and some believe that the hype in the technology sector about patent auctions might be over.
The company, which is facing bankruptcy, has received low buds for its patents that it believes are worth $2.6 billion. All of the company's 1,100 digital patents have received bids worth less than $ 500 million. Various companies including Google, Microsoft and Apple have reportedly submitted their bids for the patents of the photography major.
Kodak is forced to sell its patents in order to be able to pay off its creditors. The auction will continue through the weekend. The company as forced to file for Chapter 11 protection in January as consumer moved to digital photography.
"Our patent auction is a complex and dynamic process, and is very much ongoing. We and all participants are still bound by the court order on confidentiality and cannot comment prior to an outcome," Kodak spokeswoman Stefanie Goodsell said.
Kodak's legal representatives will present the bids to the bankruptcy court on Monday. The company had obtained a $950 million bankruptcy loan from Citigroup and will help replay it using proceeds from the auction.
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