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WSJ: Apple, Google reportedly in rival groups to buy Kodak patents
Kodak might be cleared to sell its patents, but it's likely no fan of the companies lined up to make a deal. The Wall Street Journal's best friends, "people familiar with the matter," assert that Apple and Google are part of separate coalitions hoping to buy the 1,100 patents up for grabs. Apple's camp supposedly includes Microsoft and controversial patent holder Intellectual Ventures; Google's team reads more like an Android Justice League, with HTC, LG, Samsung and "patent risk solutions" provider RPX all playing a part. Real or not, there's still much that's up in the air. Kodak's not talking, and even the touted insiders warn both of new challengers and allegiances that could be in flux over the next few days. If there's meat on this rumor bone, however, it could make the August 8th auction another patent war spectacle rather than a mere ticket back to solvency for Kodak. Break out the popcorn. [Image credit: Pittaya Sroilong, Flickr]
Artega fails to sell auto business, files for bankruptcy
As things seem to be incredibly promising at Tesla Motors' California headquarters, the situation for a competitor on the other side of the world is growing quite grim. Artega, which reached our hearts at the Geneva Motor Show just last year with its beautiful all-electric SE sports car, has filed for bankruptcy after failing to sell the company to "an Asian investor." Meanwhile, Artega will continue the search for business partners, and will keep running its German operation with 34 employees. The news is disappointing to say the least, especially with Tesla's Roadster dropping from production in 2011. Hit up the source link below for a (German-language) explanation, directly from Artega.
Judge permits Kodak's patent auction despite Apple's objections
US Bankruptcy Judge Allan Groper said in a Tuesday hearing that struggling Kodak can auction off more than 1,100 patents as part of its bankruptcy restructuring plan, according to a Bloomberg report. The sale will go forward, despite Apple's objection to the auction and its outstanding ownership claims. Apple previously filed a lawsuit against Kodak claiming that the camera company stole the technology that is included in ten of the patents that Kodak hopes to sell off. Kodak sued to block Apple's ownership claims and the two lawsuits are making their way through the court system. Kodak said in a statement to Bloomberg that "We are gratified that the court has enabled us to move ahead with our patent auction in a timely manner and with clarity on ownership for the winning buyer." Apple declined to comment.
Kodak gets the green light to sell digital imaging patents
It's been a long road for Kodak to get to this point, but it seems the floundering company has finally won approval to sell off its digital imaging patents. Over the objections of Apple and Flashpoint (nothing like kicking a company when its down), the Bankruptcy Court awarded Kodak the right to auction off its Digital Capture and Kodak Imaging Systems and Services (KISS) patent portfolios. While the challenges haven't been completely dismissed, the ruling provides an opportunity for the struggling Rochester firm to move ahead with its auction plans in the face of what it calls "baseless claims." Soon enough the bids for the rather sizable and valuable portfolios will start rolling in, and should provide Kodak with enough cash to keep its head above water for a little bit longer. For more detail, check out the PR after the break. [Image Credit: MercerFilm]
Kodak sues Apple for allegedly interfering with patent sales, has little nostalgia for your QuickTake
Kodak may have recently obtained clearance to sell some patents and help dig itself out of bankruptcy, but it wants to be extra-certain Apple is nowhere near potential buyers if a deal goes down. The former camera maker is suing Apple in hopes of making the former collaborator drop challenges to the ownership of 10 imaging patents from the early 1990s, when the two were still buddy-buddy enough to design the QuickTake camera line together. Claims by Apple and patent transfer recipient FlashPoint Technology are purportedly just attempts to stall any patent sale as long as possible and spook buyers away, forcing Kodak to make some hard decisions about its own lawsuits. That's not to say Kodak is a doe-eyed innocent here: Apple has accused Kodak of trying to sweep any patent disputes under the rug with bankruptcy as the pretext. Although the lawsuit is just one part of a larger story, it could more definitively answer whether or not Kodak has enough bullets left in its patent gun. [Image credit: Mikhail Shcherbakov, Flickr]
Subpoenas issued over 38 Studios deal, Citizens Bank sues Schilling [Updated]
While the fallout from 38 Studios' collapse carries with it a human toll, it also has triggered a legal one as well. State and federal law enforcement agencies have issued subpoenas to both Bank Rhode Island and the Rhode Island Economic Development Corporation over the loans that enticed the game studio to the state. Currently, the RI state police, the state attorney general's office, the FBI, and the US attorney's office are jointly looking into the situation. Police are investigating the specifics of the deals in an attempt to figure out what exactly happened. The subpoenas requested records of the financial contracts and loans. Both the RIEDC's $75M in taxpayer bonds and Bank Rhode Island's $8.5M loan are unlikely to be repaid following the studio's bankruptcy. [Update: Massively reader Zaken tipped us off to the fact that Citizens Bank has announced it is suing 38 Studios' Curt Schilling to the tune of $2.4 million "in an attempt to recoup its money from the ex-ballplayer's personal assets."]
38 Studios declares bankruptcy, law enforcement investigating [Updated]
38 Studios, in a move surprising absolutely no one, has declared bankruptcy. This report comes hot on the heels of the news that the Project Copernicus developer has laid off all of its employees and sold Big Huge Games. In addition to covering the bankruptcy, the Providence Journal revealed that "state and federal authorities have launched an investigation into [the company]." State police Col. Steven G. O'Donnell states that the inquiry is taking place "to investigate activities that have recently come to light at 38 Studios." According to the Journal, these activities include taking out loans totaling $8.5 million US "based on state film tax credits that had not yet been issued." Things are looking pretty grim for Curt Schilling and his studio, but we'll just have to stay tuned to see how the rest of this plays out. [Update: Our sister site Joystiq reports that the Rhode Island governor has stated, "We are going to do everything possible to maximize return on our investment [...] Taxpayers in Rhode Island can have full confidence that if there's a penny that we can get, or a nickle or a dime, we'll get it." The company is suspected to be worth "tens of millions of dollars."]
ITC says again that Apple and RIM don't violate Kodak patent
Kodak hasn't caught a break lately, and that trend isn't easing up any time soon with a second rejection arriving in its main International Trade Commission (ITC) patent dispute with Apple and RIM. Despite having had its case remanded after a loss last year, Kodak is once more being told that BlackBerrys and iPhones don't violate a patent on previewing photos. The one violation was rendered moot through "obviousness," according to administrative law judge Thomas Pender. It's still an initial ruling, and Kodak is trying to put a positive light on the situation -- it's "pleased" there's still an infringement, even if the patent claim is invalid -- but the patent wars aren't looking good for a photography company that has already had to give up cameras to have a chance of staying afloat. Most of Kodak's hope, then, will be pinned on a second wave of ITC disputes that might stand a better chance of putting at least Apple's feet to the fire.
Kodak accuses Apple of interfering with patent sale
Things are getting heated in Kodak's patent battle with Apple. In a recent court filing noticed by Total Telecom, Kodak accused the Cupertino company of trying to interfere in its upcoming patent auction in order to avoid paying US$1 billion in penalties and royalty fees. According to the court document, Kodak says Apple shouldn't be allowed to claim ownership of a key Kodak imaging patent that describes a method of previewing a photo on an LCD. Kodak argues that the International Trade Commission and a US District Court have denied Apple's ownership claims. Apple, however, continues to assert that Kodak misappropriated its technology to get the patent. If Apple's ownership is upheld, then the company would not have to pay royalties or any infringement penalties to Kodak. It would also prevent Kodak from paying off its creditors by selling this valuable patent in an auction. Kodak asked the bankruptcy judge to consider this matter during a hearing scheduled for June 14. This would give the court a few weeks to make a decision before Kodak must file its patent auction rules and timeline with the bankruptcy court. Needless to say, Kodak's patent auction would go smoother if there wasn't an Apple ownership claim on one of the company's most important patents.
LightSquared officially files for Chapter 11 bankruptcy
As expected, May 14th is indeed a dark day for LightSquared. The company has just filed paperwork in order to initiate Chapter 11 bankruptcy proceedings in Manhattan's US Bankruptcy Court, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone's baby looks weaker than ever. With the Sprint tie-up now void, and over $1.6 billion in debt, there's probably not too many places for LS to turn. The primary hurdle -- one it never could seem to overcome -- was the FCC's outright refusal to believe any of the company's mitigation proposals in relation to GPS interference issues. Despite "profoundly disagreeing" and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone's guess, but it won't be a quiet fall from grace, we're surmising.
WSJ: LightSquared 'preparing' for bankruptcy protection filing, final decision coming tomorrow
Can't say it's striking us as any sort of surprise, but the seemingly destined-to-fail LightSquared just might be out of options. After getting a high-five from Sprint and plenty of attention for its initiatives in bringing yet another wireless option to America, those blasted GPS interference issues (or "supposed" issues, depending on who you ask) eventually became too much to overcome. According to a breaking report out of The Wall Street Journal, Philip Falcone's venture is seriously teetering on the edge of bankruptcy, as "negotiations with lenders to avoid a potential default faltered," according to the ever-present "people familiar with the matter." Purportedly, the two sides have until 5PM tomorrow to strike a deal that'll keep the firm out of bankruptcy court (if you'll recall, it owes over $1.6 billion dollars to various entities), but given just how far apart these sides remain, its fate seems all but sealed. We'll be keeping an ear to the ground for more, but don't go placing bets on yet another debt-term violation waiver.
Awesomenauts to launch as planned on PSN tomorrow, XBLA naut known [Update: XBLA now known!]
Awesomenauts will launch as scheduled on PSN in North America tomorrow, Sony announced via Twitter today. The future of Awesomenauts was thrown into disarray yesterday when news broke that its publisher, dtp entertainment, had filed for insolvency. Developer Ronimo said it was working with dtp to get Awesomenauts published.Awesomenauts will be free for PS Plus subscribers, Sony said. It was scheduled to launch on XBLA on May 2, but that release is still unconfirmed. We've contacted Microsoft for clarification.Update: Ronimo has confirmed to Joystiq that Awesomenauts will launch as scheduled on XBLA, on May 2. Microsoft has yet to respond, but this is heartening news for potential Awesomenauts fans everywhere.
LightSquared founder Philip Falcone to step down 'eventually', attempts to dodge the bankruptcy bullet
In an effort keep the troubled LightSquared from the brink of defaulting on its debt, its founder will step down from the company. While it doesn't look immediate, (people "familiar with the negotiations" are using the word "eventually") it's Philip Falcone's latest attempt to extend a debt-term violation that expires this morning. According to the same sources, if the initial extension is okayed, Falcone and LightSquared's lenders are aiming for a greater period of around 18 months to repay $1.6 billion in loans and pass the FCC's requirements for its network. The company's board is still deliberating on whether to accept the deal, which would stop the company filing for bankruptcy protection. Unfortunately, it looks like those new 4G network dreams just got hazier.
Awesomenauts may not launch as planned, publisher files for insolvency
The German publisher of Awesomenauts, dtp entertainment, filed for insolvency today, potentially stopping the game's XBLA and PSN launch on May 2. Developer Ronimo Games isn't sure what dtp's financial problems mean for Awesomenauts, but both companies are attempting to work out a resolution that gets the game published, IGN reports."Insolvency" is the European equivalent of bankruptcy and dtp now faces liquidating or reorganizing its assets, IGN writes. We've contacted Ronimo for comment about dtp's insolvency and the status of Awesomenauts.
Inmarsat hands LightSquared a lifeline, hopes to get that $56 million back later
Remember LightSquared? Of course you do, it was the noble yet doomed attempt to build a nationwide 4G LTE network. Days before Sprint dumped it, billionaire Philip Falcone's enterprise defaulted on a $56 million spectrum allocation payment to British satellite operator Inmarsat. Now LightSquared's biggest creditor has offered a stay of execution to give the company time to overcome the regulatory hurdles (we'd suggest praying Julius Genachowski gets another job elsewhere) and get the project back on track. Cynics might suggest it's only been given the breathing room because it's not worth being pushed into Chapter 7 bankruptcy, to which we say shame on you, you naughty cynics.
Investment company buys Game, halting closures, firings, bankruptcy
This has been a quick time coming -- Game, the UK games retailer, slipped into a downward spiral early this year, and since the first public announcement of its money troubles in February, Game has closed almost 300 stores, stopped stocking major titles, cut 40 percent of its workforce and entered "administration," the equivalent of filing for bankruptcy.The best outcome of these events would be for someone to step in and buy Game outright -- which is exactly what happened. Private investment company OpCapita's Baker Acquisitions Unlimited has purchased Game, bringing it out of administration and saving 3,200 jobs across a remaining 333 stores and administrative positions, Eurogamer reports.Baker will provide Game with "the capital it needs to trade on a normalised basis" and will re-hire a small number of people fired from the Game head office last week. There are no plans to close more stores in the future, Baker said.Game may have been bought for £1, after paying off an £85 million debt to Game's lenders, Eurogamer said.
Apple denied request to continue litigation against bankrupt Kodak
U.S. Bankruptcy Judge Allan Gropper said Thursday that Apple cannot pursue litigation against Kodak while the camera company is still in bankruptcy, says a Reuters report. The judge said it would be an "inappropriate way forward" to let Apple pursue current court cases or file new ones at this time. Last month, Apple asked the court to lift the stay that stopped a heated court case between the two companies over digital photography patents Kodak owns. This case was put on hold when Kodak filed for bankruptcy. As part of the bankruptcy process, Kodak wants to sell off its patent portfolio which includes the patent at the heart of this case. Apple, however, wants to stop Kodak from selling the patent and threatened to file new litigation until a decision is made on this patent dispute. Now that litigation is no longer an option, Kodak and Apple must go back to the drawing board and resolve this patent dispute in a way that does not interfere with Kodak's bankruptcy case.
Judge says Apple can't pursue patent infringement case against Kodak
Apple was dealt a setback today in its efforts to prevent Kodak from selling up to $2.6 billion worth of digital imaging patents, with U.S. Bankruptcy Judge Allan Gropper ruling that it would be an "inappropriate way forward" to allow Apple to pursue patent litigation against the bankrupt company. For its part, Apple had argued that one of those patents -- concerning the ability to preview digital photos on an LCD screen -- was "misappropriated" from its own technology, and that Kodak therefore shouldn't be allowed to sell it off as part of the planned sale (something Kodak obviously disputes). On that point, the judge did agree that the matter should be resolved soon, just not in the manner in which Apple had been proceeding, further adding that he "would request that the parties report to me on their efforts to come up with a procedure that truly works."
Kodak asks bankruptcy court to decide on patent dispute with Apple
Kodak is asking the bankruptcy court to make a decision about an imaging patent that's part of a lawsuit with Apple, says a report in Computerworld. The disputed patent is owned by Kodak and describes a camera that takes high quality stills and lets the user review these images on an LCD. Kodak and Apple have been fighting the case in the Western District Court of New York, but the proceedings stalled after Kodak filed for bankruptcy. Apple recently asked the court to remove this bankruptcy stay and transfer the case to the U.S. District Court for the Southern District of New York. Kodak, however, is in the process of selling off its assets, including the patent in this lawsuit. Apple claims Kodak should not be allowed to sell its patent portfolio until this dispute has been resolved. If Kodak can convince the Bankruptcy Court to make a decision on the patent, it can sidestep the lawsuit with Apple and sell its patent portfolio to the highest bidder. Though it doesn't have a buyer for its portfolio, online photo company Shutterfly has agreed to pay US$23.8 million for Kodak's online photo services business.
Kodak moves to block Apple's latest patent suit from proceeding in federal district court
In a move that's sure to surprise no one, Kodak is fighting Apple's latest round of patent litigation -- a suit that would force Kodak to pause plans to sell up to $2.6 billion in digital imaging patents as a condition of its bankruptcy loan. In documents filed late last week, Kodak argued the dispute should be heard by the same bankruptcy court that's already overseeing its insolvency proceedings. In fact, Kodak's bankruptcy filing back in January caused all pending litigation (from Apple and RIM, among others) to come to a screeching halt, but Apple is nonetheless pushing for a reboot, arguing it's the owner of "a number of valuable patents," including one that could be lost if that planned $2 billion sale goes through. So where might this legal catfight take place? A bankruptcy judge is expected to hear arguments from both sides on Thursday.
