Patents

by Mike Masnick


Filed Under:
auction, incentives, patent trolls, patents

Companies:
kodak



Execs From Bankrupt Kodak To Make Millions For Giving The Company's Patents To Trolls

from the this-is-not-innovation dept

We've written about the ridiculousness of the ongoing auction over Kodak's patents -- the final sad legacy for the once giant company. However, it's getting even more ridiculous. On Monday, a bankruptcy court judge approved about $6 million in "performance" bonuses for execs, including some that are based on how much the company gets from these auctions. Think about the ridiculous incentive structure here. You have executives who are running a bankrupt company, who are set to make millions (in a court approved manner), for handing off the company's patents to trolls, so they can go out and sue the actual innovators.

The execs make out like bandits. The buyers likely make out like bandits after shaking down some companies. The lawyers (of course) make out like bandits. And... who gets screwed? Oh yeah, the companies who are actually innovating successfully in the market and the public (who we thought the patent system was supposed to benefit).

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  1. identicon
    Anonymous Coward, 7 Aug 2012 @ 8:37pm

    Re:

    He is not trying to discredit selling the patents. The patents are an asset of a bankrupt company, being sold off to pay creditors plus the unhappy shareholders. The real story is about elite greed. The executives are not entitled to any of the proceeds of the sale of any of the assets, including the patents. That money should be going to creditors in the first instance, then shareholders after the creditors are all paid off. The executives get to draw their normal salaries, for as long as their jobs last, and that is it. Their salaries may be reduced by decision of the receiver. They may be dismissed at any time by the receiver.

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