Eastman Kodak Co. (EK), the photography pioneer that introduced its $1 Brownie Camera more than a century ago, filed for bankruptcy court protection from creditors after consumers worldwide transitioned from film to digital technology. Kodak said it had obtained a 950 million dollar credit facility from Citgroup to keep it going for 18 months. Due to innovation deficit and suffered from a variety of problems, Kodak has become the latest giant to falter in the face of advancing technology. However, the patents they hold might be its best hope to rise again.

Innovation deficit

Founded in 1880, Kodak was for a long time one of America's most notable companies, helping establish the market for camera film and then dominating the field. "As the camera giant, Kodak once dominated its industry and they had numerous leading invention patents. But it failed to quickly embrace more modern technologies such as the digital camera. All enterprises should learn the lessons from Kodak and make appropriate adjustments in ever-changing circumstances." said Dr. Li Shunde from Chinese Academy of Sciences.

Kodak has been advanced in research and patents, and the company invented the first digital camera in 1975. But, the invention was shelved because Kodak worried that it would threaten its lucrative film business and failed to seize the opportunity in the digital age. "Realizing the vital importance of the advancing technology, its competitors such as Canon, Nikon and Olympus strived to make efforts on innovation. In some ways, it is innovation created the wonders of Kodak and the innovation deficit destroyed its miracles." A representative from a Beijing-based image technology company.

Patents might help its resurrection

Kodak is currently at crossroads, and there could only be two results: never make a comeback after bankruptcy or rise again. Some experts said the sale of part of the business and patents might be wise. Chicago restructuring consulting firm Development Specialists CEO Bill Brent said that Kodak's only hope is to reorganize as an intellectual property company. First, the Kodak patent consignment must be ready, and then decide whether to sell these products under the patent, or to retain them in the next few years remodeling company. At the same time, some experts do not feel optimistic about the restructuring and the buyers are not sure about the security and authority of the patents they purchased.

"Whether or not Kodak would rise again by selling patents, it tells people that IPR is an important fortune and asset to make money for the companies. If they could rise again, patents might help. Kodak's story gave a vivid lesson on the Chinese companies that they should keep crisis awareness and innovative spirit. Innovation and patents might be a life-saving straw for the companies in difficulty some day. " Dr. Li Shunde said.

(China IP News)