Eastman Kodak to license patented laser-projection technology to Imax

Eastman Kodak Co will provide laser-projection technology to Imax Corp, to bolster revenue as the floundering 131-year-old camera company seeks to ward  off bankruptcy.

Rochester, New York-based Kodak, would receive an upfront payment of over $10 million, a milestone payment and ongoing royalties, according to an unnamed person with knowledge of the matter quoted by Bloomberg. The Imax Mississauga, Ontario-based company said in a statement yesterday that it would gain technology allowing it to expand the use of digital projection on its giant-screen theatres.

The 10-year deal would help Kodak address a cash shortfall and advance a goal of raising $250 million to $350 million in revenue this year from licensing intellectual property.

On 30 September, the company said it had  ''no intention'' of filing for bankruptcy.

According to analysts this was the ordinary course of business and it served to highlight that the company had intellectual property aside of image capture and printing.

Gerard Meuchner, a spokesman for Eastman Kodak said the cash would be used for general corporate purposes.