Eastman Kodak announced that it will sell substantially all the assets associated with its OLED business to a group of LG companies. This move will tighten Kodak’s investment focus and strengthen its financial position. Financial details were not disclosed.

Kodak has been a pioneer in developing technology associated with OLED displays. In the 1970s, Kodak scientists developed the world’s first viable OLED material.

Kodak will have continuing access to its OLED technology for use in its products. Subject to customary closing conditions, the transaction is expected to close by the end of the year.

Cross-License Agreement
At the same time, Kodak confirmed that it has entered into a technology cross-license agreement with LG Electronics, Inc., which will allow each company broad access to the other’s patent portfolio.

The license agreement, which provides significant benefits to both companies, is royalty-bearing to Kodak. Additional financial details were not disclosed.

The companies also agreed to conclude their patent litigation, which involved a subset of their imaging technologies. Pursuant to a settlement agreement, Kodak and LG will request that the U.S. International Trade Commission terminate the investigations initiated earlier this year following complaints filed by both companies in late 2008.