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Kodak to shutter digital camera production this year
This year has not been a kind one for Kodak. Last month, the photography pioneer announced that it was filing for bankruptcy (and suing Samsung, incidentally), and now the company has let it be known that it will be dropping out of the digital camera business -- and then some -- marking an end to its line of digital point-and-shoots, pocket camcorders and digital photo frames. Production will end the first half of this year. The future for the company will hold printers, brand licensing, enterprise services and photo labs. Kodak will, however, continue to honor warranties on existing products.
It's official: Nortel patent sale approved by US and Canadian courts (updated)
Nortel was just looking for some quick cash when the company put its 6,000 telecommunications patents up for auction. Then Google decided that IP would make a mighty fine troll deterrent, and started a crazy bidding war to get it. A coalition of the willing -- including Apple, EMC, Ericsson, Microsoft, RIM, and Sony -- opposed Big G and paid $4.5 billion for the prize portfolio pending approval by the powers that be. Well, both Canadian and US bankruptcy judges just gave the purchase two thumbs up, and the deal is officially done. Now the question is whether the auction's victors will use these patents as a shield against those with trollish intentions or as a sword to strike at their enemies? Update: To clarify, the deal was only approved by the bankruptcy courts, and the US DOJ is examining the sale for its possible anti-competitive effects.
Google bids $900 million for Nortel patent portfolio, will use it as shield against patent trolls (update)
Google and Nortel have agreed on the princely sum of $900 million to start off a "stalking horse" auction -- wherein outside parties are still free to outdo Google's bid -- for the acquisition of Nortel's rather vast patent portfolio. The sale comes as part of the latter company's bankruptcy selloff and involves some 6,000 patents and patent applications, which encompass both wired and wireless communications, semiconductors, data networking, voice, and the internet -- going so far as to even touch on web search and social networking. The thing is, Google's not really enamored with these tidbits of intellectual property to the tune of nearly a billion dollars. No sir, a rather bitter blog post from the company this morning makes it quite clear that Google's acting in order to bolster its own intellectual property library and to "create a disincentive for others to sue." Both Android and Chrome get obliquely mentioned in Google's announcement as benefiting from the move, which should be completed by June of this year pending other bids and regulatory approvals. Update: Microsoft has noted that it has "a worldwide, perpetual, royalty-free license to all of Nortel's patents that covers all Microsoft products and services, resulting from the patent cross-license signed with Nortel in 2006." That license will also transfer with the sale of the patent rights. All that means is that Microsoft cannot be sued for infringing on that bundle of rights as it is already licensed to use them. That means Microsoft is extremely unlikely to participate in this auction -- other than, of course, as a means to prevent others from obtaining the same rights.
Blockbuster going up for sale, hoping to live up to its name
Don't think of this as the end of the road for Blockbuster, think of it as a new beginning. After filing for Bankruptcy back in September, big blue and yellow has been working to get its affairs in order -- and trying desperately to fend off both Netflix and Redbox with offerings like Blockbuster on Demand and Blockbuster Express. Things apparently haven't gone entirely to plan. The next stop is For Salesville, with bids for the company starting at $290 million. CEO Jim Keys put a positive spin on the news, saying that this will "allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future." It might also finally let that guy take a vacation -- a potentially very long one.
Borders files for bankruptcy, plans to keep operating but close 30 percent of its stores
We heard the news was coming, and now it's official -- Borders, the second-biggest bookstore chain the U.S., has filed for bankruptcy. As expected, the company will continue to operate while it restructures, but it will hardly be the same company it once was. It's being forced to close around 200 (or 30 percent) of its stores, and it may need to close another 75 if it's not able to gain some concessions from landlords, according to Bloomberg. This is news on Engadget, of course, because Borders has also been trying to compete with Amazon and Barnes & Noble beyond its core brick-and-mortar bookselling business in recent years (and not exactly succeeding). While the company hasn't produced its own e-book reader, it has partnered with Kobo to sell its device, and it has established its own e-book store that's also used by its various e-reader apps for smartphones and tablets. There's no indication as of yet that the bankruptcy will affect those endeavors. Update: Kobo has now commented on the situation on its blog, saying that Borders' bankruptcy means "nothing" for Kobo customers, and that it is an "independent, financially secure company."
Clear security lanes reopen in Orlando, coming soon to Denver
There's just nothing quite like a promised kept, you know? Back in May, we heard that the financially troubled Clear would be making a comeback this fall, and lo and behold, the first Clear security lanes in quite some time have opened up in Orlando International Airport (MCO). Just as before, customers angels who fork out $179 per year and pass a litany of personality tests (we kid, we kid... sort of) will be able to breeze right through a dedicated security lane, enabling them to show up just moments prior to takeoff, claim their seat and simultaneously draw the ire of every other nearby passenger. In the next few months, Clear will roll out a family plan that enables the $179er to add members at $50 a pop, and during the introduction period, all members will receive a free month. Best of all, those who used Clear before can have their cards reactivated once it returns to their home airport. The company intends to open lanes in Denver later this month, but expansion plans beyond that remain a mystery. Feel free to get amped by watching the video just past the break.
TerreStar makes it official, files for Chapter 11 bankruptcy
Teetering no longer. According to Reuters, satellite phone maker TerreStar has filed for Chapter 11 bankruptcy to protect itself from liabilities in the range of $1.6 billion. As expected, a restructuring is in order, with Blackstone Group LP providing financial advice for such a move. One of TerreStars' creditors, EchoStar, is offering $75 million in financing to help keep the company operate while it goes through the bankruptcy. Shame that it's the icing on the cake for its Genus, having just launched on AT&T not one month ago. Them's the breaks. [Thanks, Brian]
French display company Nemoptic reportedly goes bankrupt
Remember that dual-mode OLED / Binem display from yesterday? Well, then you might want to hang onto those memories, as the company behind it has apparently now gone bankrupt. While there's no official word from the company itself, French website Actualitte is reporting that the company, Nemoptic, was more than three million euros in debt and has been unable to find a buyer to bail it out. Of course, there's always a chance that another company could now swoop in and pick up Nemoptic's IP now that it's in receivership, though there's obviously no guarantees.
Playlogic asks for mercy from court against creditors
Dutch publisher Playlogic (Fairytale Fights, Obscure: The Aftermath) has notified the US Securities and Exchange Commission that it has entered into "surseance van betaling," which is closely equivalent to the States' Chapter 11 bankruptcy. The company claims in the filing that "Tough market conditions, late payments by large customers and the delays in projects have forced the company to seek protection under the Dutch bankruptcy laws." According to GI.biz, Playlogic is suing distribution partner Koch Media for €1.7 million ($2.2M) in unpaid bills as it continues hemorrhaging money, after recording a $20 million loss in its previous fiscal year. For a company that stated just yesterday that it wasn't bankrupt, it's amazing what a difference a day makes.
Clear security lanes storming back to airports, principled travelers high five one another
Don't call it a comeback. Or do, because that's precisely what this is. After Clear shuffled its final incorruptible passenger through a speedy security lane in June of last year, the company closed up shop and forced even the nicest of travelers to re-join the herds. Thankfully for us all, Alclear has decided that life's simply no good without a hasty security option at airports, and it has plopped down $6 million in order to acquire the assets of Verified Identity Pass out of bankruptcy protection. According to our hombres at Gadling, that purchase price doesn't include individual airport contracts, so it'll be an uphill battle getting these lanes back into the places in which they're needed. If all goes well, we could see the first Clear avenues reopen this fall, with pricing set at $179 per year for unlimited individual use or $229 per year for unlimited family use. Head on past the break for more details on reactivating old subscriptions and the full presser.
InPhase out of business, assets seized for back taxes
It's been something like five years that we've been eagerly waiting for InPhase to finally release that revolutionary holographic storage solution, and while there has been plenty of drama in the way of release dates promised and pushed back, and even some layoffs to keep things interesting, the company has been pretty, pretty quiet lately. As it turns out, this has been due to the fact that employees have been busy enough updating their resumes. "We were expecting it for a long time," said one employee, among the sixty or so who picked up their final paychecks last week. "So it wasn't a big surprise." To put a finer point on things, it's been announced that the Colorado Department of Revenue has seized the company's assets for non-payment of taxes. According to The Register, the state has changed the locks and announced that everything on the premises will be auctioned off, down to the fixtures and furniture. This is certainly an ignominious end to a once great idea, but as you know every cloud has a silver lining: If you're looking to get into the holographic storage business, drop us a line. We've heard that some equipment is becoming available soon -- and at a great price.
Iridium to merge with GHL, get back into sat phone game
Aside from pushing out around one phone per year (at best), Iridium Satellite really hasn't had a major impact on the market over the past ten years. 'Course, that's probably because it's hard to have much impact after seeking bankruptcy protection in 1999, but we digress. Starting tomorrow, new life will be breathed into Iridium thanks to a merger with publicly traded GHL Acquisition. If all goes to plan, the merger will add over $200 million to the company's bank account, enabling it to pay down debt and develop a next-generation network of satellites to be launched in 2014. Furthermore, $160 million will be raised by issuing another 16 million shares at $10 a pop, and a new label (Iridium Communications) will be thrown on for good measure. Only time will tell if the world really is ready to adopt satellite phones en masse, but if TerraStar's latest deal is any indication, we'd say chances are good halfway decent.
Nabaztag can't make RFID cool, has to file for bankruptcy
We always knew that any company courageous enough to take a technology designed to help mega-corps monitor their inventory levels and make it mainstream would face an uphill battle, but we never envisioned Nabaztag caving entirely to the pressure. If a snippet in a recent issue of Les Echos (a French financial paper) is to be believed, the creator of the rabbit-inspired Violet RFID Mirror has filed for bankruptcy, giving any company interested in keeping the brand alive until September 4th to toss out a cash infusion. Not like we're looking at you, Mr. VC, but we're definitely hoping to not be sobbing about this in just under a month. Tick, tock.[Voa Loic Le Meur]
Polymer Vision yields to bankruptcy, we bid Readius adieu
Ugh. Another one bites the gently gnashed rock particles, as they say. Polymer Vision, which was already having some pretty significant cash flow issues back in April, has reportedly caved under pressure and sought shelter under Chapter 11. According to the Hampshire Chronicle, the company famous for developing a bendable e-paper display has fittingly folded, leaving its 50 employees searching for new lines of work and millions of fans grasping for answers. The report continues to say that the promising (but oft delayed) Readius display isn't likely to ship in its current form, and now it seems that the future is quite murky for the company and its flagship product. Call us crazy, but if you're looking for an easy way into the e-paper market, you might be able to pick up whatever's left here for a song. Just sayin'.[Thanks, Charlie]
GM says bankruptcy won't affect the Volt, but how much say does it have?
As General Motors finally caved this morning, waved the white flag and filed for bankruptcy, those following electric cars immediately wondered what this all would mean for the long-awaited Volt. For years now, GM has steadfastly affirmed that it was moving forward with production regardless of what else was going on within the company and the economy at large. According to Technology Review, a GM spokesperson confirmed again this morning that "the filing will have no impact on the company's plans to start selling the Volt at the end of next year." That said, we have to wonder how much such a statement really means; reports have stated that the US government may up holding as much as 60 percent of the company, and if the primary goal is to bring the outfit back to profitability as soon as possible, Obama and Company may not feel that pouring even more into the high-priced Volt is a good idea. In related news, we hear Tesla is still taking orders...Update: GM has pushed out an official statement that (in a few words) also suggests that the Volt is still on track.
Psystar files for bankruptcy, anonymous creditors to be outed
We have mixed feelings about the news that Psystar is going under. On the one hand, it's wonderful having somebody attempt to create powerful, expandable Macs for cheap, on the other hand the company has been generally abrasive to the grassroots hacker community its work is based on, and pretty bombastic when it comes to Apple and "the law." But hey, everybody needs to make a profit, even companies being sued into oblivion by Apple, and the news of Psystar filing for Chapter 11 bankruptcy protection has interesting legal implications. Not only does it stall Apple's case against the company -- while implying a possibly inevitable defeat -- but Apple has long posited that a mystery investor behind Psystar has nefarious aims, and the bankruptcy hearing on June 5th will name the creditors behind the company. Our fingers are crossed for a "Dan Brown"-style conspiracy, but we're prepared to be "post-2002 Tom Hanks"-style disappointed.[Via SlashGear]
Systemax relaunches Circuit City's website, this time with feeling
After shelling out some $6.5 million, you had to know that Systemax planned on doing something with Circuit City's trademarks and internet domain names. As of today, CircuitCity.com is back and better than ever, carrying on the legacy of a name that became synonymous with overpriced consumer electronics for nearly six decades. Of course, this doesn't mean that any Circuit City retail stores will be re-opening, but at least the brand is living on in the world wide web. The wonders of the internet: I Can Has Cheezburger?, Twitter and the continuation of an icon that would otherwise be six feet underground.[Thanks to everyone who sent this in]
SGI name lives on after $42.5 million sale to Rackable Systems
As you know, Rackable Systems was originally hoping to acquire the one-time king of the 3D set for $25 million (with some speculating that even that was a bit much), but it looks like the bankruptcy judges had other plans. Now that the dust has settled (and a check has been cut for almost twice the original asking price) it looks like the two companies will finally merge, forming an outfit called... SGI. The newly minted Silicon Graphics International hopes to combine the strong server business of Rackable with the original Silicon Graphics Inc. name (and overseas service contracts), inspiring the same sort of technological alchemy that once brought the iconic brand to the silver screen by way of such fine cinematic fare as First Kid. In addition, SGI plans continued development and support for the existing Silicon Graphics and Rackable product lines. Quite frankly, we really don't care what they do, as long as they bring back the Indigo -- back in the day we would have killed for one of those bad boys.
Stereophile mag's parent company hits hard times
We've been steering around stories related to the woeful state of the economy -- and even trying to add some sunshine of our own -- because, frankly, writing about an endless string of companies hitting hard times is just depressing. But the bankruptcy of Source Interlink, parent company of Stereophile magazine, strikes a nostalgic chord for us. Our introduction to the crazy audiophile world came through the folio-sized pages, but recent glances at magazine racks show a slimming magazine and a move towards the nosebleed price regime of the high-end. We don't think that the growth in consumer audio -- and (gasp) convenience -- is at odds with high performance, and one magazine is hardly a bellwether for an entire market; but it's clear that manufacturers need to do more than put high-grade finishes and price tags on their goods to enjoy a healthy business that can survive changing trends in today's market. But we'd love to hear your thoughts -- what's your take on the health of high-end audio?
Phoenix Motorcars undergoing restructuring, still committed to EV space
With proven success stories like Tesla struggling to keep those electric car dreams alive in today's economy, it's no shock to hear that at least one little guy (that'd be Phoenix Motorcars) has caved to the pressures. After reviving itself once already late last year by nailing down a partnership with the absolutely stunning state of Hawai'i, it seems the company hasn't been able to progress as planned with its intentions to bring EVs and an electric vehicle infrastructure to the island of Maui. According to a filing on April 27th, the flagging automaker has pegged the soft economy (surprise!) as well as a $5.3 million arbitration apparently won by former drivetrain supplier UQM as the main contributors to its demise. In an update to the situation, however, its CEO has replied to AutoblogGreen in order to reaffirm that it "has not abandoned the alternative fuels transportation space." Unfortunately, that could mean absolutely anything... or nothing at all.Read - Original filingRead - Update from Phoenix MC
