(Image source: Third Age)

BY BRICE SANDER

Could the picture be looking brighter for Kodak? Hoping for financial stability, the camera company licensed more than 1,000 patents to IMAX. Fox Business explains the deal.

“The Kodak patents will allow IMAX to provide digital content for theater screens larger than 80 feet as well as domed theaters. IMAX would only reveal that the agreement is royalty-bearing to Kodak and IMAX says it expects to introduce the new laser projection technology by the second half of 2013.”

This isn’t the first time Kodak’s tried a patent payout. A Wall Street Journal writer worries the company may be running out of Kodak moments.

“The struggling photography icon has used patent licensing as a source of funds in recent years, but the pipeline of deals dried up this year.”

And an LA Times contributor questions Kodak’s choice of IMAX for financial support-   

“It's not clear how investors will respond to the Kodak deal. Imax shares have fallen 45% in the last six months, following weaker returns from 3-D films.”

But, the analysts at Bloomberg argue- at this point- Kodak needs any help it can get.

JON ERLICHMAN: “Here’s a company that desperately needs some cash- they’re going to be getting $10 million from what we’re hearing at least from IMAX and then some royalty payments as well. They went through $850 million of cash in the first half of the year and in the second quarter they only had about $900 or so left and they need the money.”
BETTY LIU: “And all that talk about bankruptcy we had a month ago still affecting Kodak.”

And- StreetInsider.com suggests the deal may already be paying off.

“The news is great for Kodak investors, who have seen shares drop 77 percent in 2011, and 96 percent plus from highs near $30 at the start of 2005. The stock is up 3.2 percent Monday on the report.”