Kodak receives approval for licensing agreements with Schneider, Signet

By Jim Witters

Wilmington, Del., Feb. 21 - Eastman Kodak Co. received approval for two licensing agreements related to camera and eyeglass lenses, according to documents filed Feb. 21 with the U.S. Bankruptcy Court for the Southern District of New York.

The approvals were for a licensing agreement claim stipulation reached with Jos. Schneider Optische Werke GmbH and an amendment and extension of a prescription eyeglass lens trademark license agreement with Signet Armorlite, Inc.

Schneider stipulation

As previously reported, under a January 2008 agreement, Kodak licensed trademarks owned and maintained by Schneider in connection with the marketing, promotion and sale of digital camera lens systems and similar products.

Kodak said the licensing agreement required it to make annual royalty payments of €2.1 million in quarterly installments of €525,000.

After Kodak filed for bankruptcy, Schneider filed €630,000 in initial claims in connection with Kodak's use of trademarks.

The bankruptcy court approved Kodak's motion to reject the Schneider agreement in July 2012. Schneider subsequently filed €4.07 million in claims, plus unliquidated claims in an amount of €5,737.7049 per day for use of the trademarks. Some of those claims were amended and expunged as duplicate claims.

Under the court-approved stipulation, Kodak will pay €525,000 to Schneider.

In addition, Schneider will have €630,000 in non-priority general unsecured claims related to the use of trademarks and a €1.05 million claim related to the rejection of the agreement.

Signet settlement

The agreement with Signet extends a prescription eyeglass lens trademark license agreement through Dec. 31, 2029, subject to an additional one-year non-exclusive sell-off period.

Kodak previously granted Signet a non-exclusive license to use specified Kodak trademarks and graphic designs on prescription eyeglass lenses and related products in exchange for royalty payments made on a quarterly basis.

The previous agreement was scheduled to expire on Dec. 31, 2014.

The amended agreement allows Signet to continue the exclusive use of trademarks in the lens space in exchange for a $30.6 million single upfront royalty payment.

If there are no defaults, Signet has the right to continue to sell licensed products for three years after expiration or terminate the current agreement as long as it complies with royalty payment obligations.

Kodak said roughly $11 million in royalty payments will be due between now and the end of December 2014.

Kodak is a Rochester, N.Y.-based imaging technology products and services provider to the photographic and graphic communications markets. The company filed for bankruptcy on Jan. 19, 2012 under Chapter 11 case number 12-10202.

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