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, 8 Aug 2012 @ 6:11am

    Re:

    TIL factual reporting on what the judge allowed and who will benefit from it is 'yellow journalism' and 'smearing the people involved.'

    Tell us oh wise AC, which facts in the above report are not well researched news? Is Kodak not filing for Chapter 11 bankruptcy? Are they not selling their patents? Did the judge not just approve the payments totally ~$6 million in performance bonuses to roughly the top 15 executives at Kodak? Do the executives not get even bigger bonuses under the incentive structure if the patents are sold?

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