IEEE Spectrum February, 2014 - 59
Snapping Up Kodak
of its assignment
number, had previously been used to secure licensing deals with LG and Samsung
for a reported $414 million and $550 million,
respectively. (Annoyingly for LG and Samsung, such deals are usually final, with no
recourse should the patent later be thrown
out.) The USITC decision would not necessarily affect 218's value in domestic litigation, but untangling the mess would take
time that Kodak did not have.
"We were floored by that decision," says
Kodak's Lynch. "Weeks earlier, the same
patent had survived re-exam and came out
with absolutely no changes. If we'd had the
resources and the financial stability, we
would have taken this to the Federal Circuit and gotten it righted...but that's just
not the way it works in bankruptcy. You
start to lose control of the process and timcontinued from page 33 |
Nortel
5
6000
patents
1700
patents
Actual
value:
$4.5
billion
4
US $, billions
Kodak
3
Projected
value*:
$2.2-2.6
billion
2
1
Projected
value*:
$1 billion
Actual
value:
$94
million
0
* Projected value determined by 284 Partners
DetermININg the vAlUe of intellectual property
can be very difficult. Nortel's wireless patents
raised 450 percent of their presale estimate,
Kodak's imaging patents less than 5 percent.
ing and you just have to drive forward. It's
a freight train."
Lasinski of 284 Partners still has a nondisclosure agreement in place for the Kodak
deal and so can't comment on the particulars. "Speaking generally," he says, "when
cash is required quickly and you have to
switch a strategy from a certain patent to
other patents, that can impact their value."
Envision IP, an IP research firm not directly
involved in the case, duly reduced its valuation of Kodak's portfolio by around $1 billion, to $1.4 billion at most.
Such reversals of fortune are commonplace in IP litigation. Billion-dollar judgments are regularly overturned on appeal,
and even a patent that has held up in court
multiple times, like Kodak's 218, can be
judged worthless at new proceedings. Part
of the problem is that while patent attorneys must hold an engineering or science
degree, there are no such requirements for
judges or juries, leading to some technically
dubious decisions.
A bigger issue, though, goes to the heart
of the patent system. "You can't tell at the
time of a patent grant precisely what it
covers," says Feldman of the University of
California. "You're using language that's
going to be compared to something that
doesn't exist at the time you write it." By
the time an industry grows up around a
patent, a decade or more down the road,
its text may seem obsolete, absurdly irrelevant, or excessively broad.
Nokia estimates that as many as 250 000
existing patents could apply to smartphones.
If each patent added just one cent to the
cost of a handset in licensing, the dumbest
smartphone would be liable for $2500 in
fees. That doesn't happen, in part because of
cross licensing of IP between manufacturers
but also because most patents are virtually
worthless. An estimated 90 percent of patents never earn a direct return, and threequarters of U.S. patents are abandoned seven
years after being issued, when extra fees to
keep them in force become due.
Even without 218, Kodak had a wide-ranging
and substantial portfolio. And so when the
auction opened on 8 August 2012, the company still expected multiple bids above a billion
dollars. But when the envelopes were opened,
it had received just two offers, the highest of
which was reportedly a mere $250 million.
fire
&ice
Adhesives for
Extreme
Temperatures
Specific grades
offer:
* Heat resistance
up to 600°F
* Cryogenic
serviceability
down to 4K
Hackensack, NJ 07601 USA
+1.201.343.8983
main@masterbond.com
www.masterbond.com
http://www.masterbond.com
Table of Contents for the Digital Edition of IEEE Spectrum February, 2014
IEEE Spectrum February, 2014 - Cover1
IEEE Spectrum February, 2014 - Cover2
IEEE Spectrum February, 2014 - 1
IEEE Spectrum February, 2014 - 2
IEEE Spectrum February, 2014 - 3
IEEE Spectrum February, 2014 - 4
IEEE Spectrum February, 2014 - 5
IEEE Spectrum February, 2014 - 6
IEEE Spectrum February, 2014 - 7
IEEE Spectrum February, 2014 - 8
IEEE Spectrum February, 2014 - 9
IEEE Spectrum February, 2014 - 10
IEEE Spectrum February, 2014 - 11
IEEE Spectrum February, 2014 - 12
IEEE Spectrum February, 2014 - 13
IEEE Spectrum February, 2014 - 14
IEEE Spectrum February, 2014 - 15
IEEE Spectrum February, 2014 - 16
IEEE Spectrum February, 2014 - 17
IEEE Spectrum February, 2014 - 18
IEEE Spectrum February, 2014 - 19
IEEE Spectrum February, 2014 - 20
IEEE Spectrum February, 2014 - 21
IEEE Spectrum February, 2014 - 22
IEEE Spectrum February, 2014 - 23
IEEE Spectrum February, 2014 - 24
IEEE Spectrum February, 2014 - 25
IEEE Spectrum February, 2014 - 26
IEEE Spectrum February, 2014 - 27
IEEE Spectrum February, 2014 - 28
IEEE Spectrum February, 2014 - 29
IEEE Spectrum February, 2014 - 30
IEEE Spectrum February, 2014 - 31
IEEE Spectrum February, 2014 - 32
IEEE Spectrum February, 2014 - 33
IEEE Spectrum February, 2014 - 34
IEEE Spectrum February, 2014 - 35
IEEE Spectrum February, 2014 - 36
IEEE Spectrum February, 2014 - 37
IEEE Spectrum February, 2014 - 38
IEEE Spectrum February, 2014 - 39
IEEE Spectrum February, 2014 - 40
IEEE Spectrum February, 2014 - 41
IEEE Spectrum February, 2014 - 42
IEEE Spectrum February, 2014 - 43
IEEE Spectrum February, 2014 - 44
IEEE Spectrum February, 2014 - 45
IEEE Spectrum February, 2014 - 46
IEEE Spectrum February, 2014 - 47
IEEE Spectrum February, 2014 - 48
IEEE Spectrum February, 2014 - 49
IEEE Spectrum February, 2014 - 50
IEEE Spectrum February, 2014 - 51
IEEE Spectrum February, 2014 - 52
IEEE Spectrum February, 2014 - 53
IEEE Spectrum February, 2014 - 54
IEEE Spectrum February, 2014 - 55
IEEE Spectrum February, 2014 - 56
IEEE Spectrum February, 2014 - 57
IEEE Spectrum February, 2014 - 58
IEEE Spectrum February, 2014 - 59
IEEE Spectrum February, 2014 - 60
IEEE Spectrum February, 2014 - 61
IEEE Spectrum February, 2014 - 62
IEEE Spectrum February, 2014 - 63
IEEE Spectrum February, 2014 - 64
IEEE Spectrum February, 2014 - 65
IEEE Spectrum February, 2014 - 66
IEEE Spectrum February, 2014 - 67
IEEE Spectrum February, 2014 - 68
IEEE Spectrum February, 2014 - 69
IEEE Spectrum February, 2014 - 70
IEEE Spectrum February, 2014 - 71
IEEE Spectrum February, 2014 - 72
IEEE Spectrum February, 2014 - Cover3
IEEE Spectrum February, 2014 - Cover4
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1217
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1117
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1017
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0917
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0817
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0717
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0617
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0517
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0417
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0317
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0217
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0117
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1216
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1116
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1016
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0916
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0816
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0716
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0616
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0516
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0416
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0316
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0216
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0116
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1215
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1115
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1015
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0915
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0815
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0715
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0615
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0515
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0415
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0315
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0215
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0115
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1214
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1114
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1014
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0914
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0814
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0714
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0614
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0514
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0414
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0314
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0214
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0114
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1213
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1113
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1013
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0913
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0813
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0713
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0613
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0513
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0413
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0313
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0213
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0113
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1212
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1112
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1012
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0912
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0812
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0712
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0612
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0512
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0412
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0312
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0212
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0112
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1211
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1111
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1011
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0911
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0811
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0711
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0611
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0511
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0411
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0311
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0211
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0111
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1210
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1110
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1010
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0910
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0810
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0710
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0610
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0510
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0410
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0310
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0210
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0110
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1209
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1109
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1009
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0909
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0809
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0709
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0609
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0509
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0409
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0309
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0209
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0109
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1208
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1108
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1008
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0908
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0808
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0708
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0608
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0508
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0408
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0308
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0208
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0108
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1207
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1107
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_1007
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0907
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0807
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0707
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0607
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0507
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0407
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0307
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0207
https://www.nxtbook.com/nxtbooks/ieee/spectrum_na_0107
https://www.nxtbookmedia.com