December 4, 2009 / 2:41 PM / 10 years ago

UPDATE 2-Kodak sets patent pact, OLED unit sale, with LG

* Kodak sale of OLED display business to LG

* Kodak sets cross licensing pact with LG, ends dispute

* Patent deal is revenue generating for Kodak

* Shares rise 4 percent (Adds background, stock details)

NEW YORK, Dec 4 (Reuters) - Eastman Kodak Co EK.N said Friday it will sell its business that developed super-thin OLED screen technology to LG Electronics Inc (066570.KS) and said the companies will share patents, ending a long-standing dispute.

The sale of its Organic Light Emitting Diodes businesses to South Korea’s LG comes after Kodak earlier this year said it would rein in spending by trimming investment in some cutting-edge technologies. Unlike LED screens, OLED requires no backlighting, making screens thinner and less power hungry.

Kodak has spent years shifting its focus from fading businesses such as traditional photographic film and into digital technology.

Financial details were not disclosed.

Kodak will continue to have access to its OLED technology for use in its products. The deal is expected to close by the end of the year.

Kodak in November 2008 filed a complaint with the U.S. International Trade Commission, alleging that mobile phones and other wireless devices by LG Electronics infringed on patented Kodak technology. In February LG asked the ITC to investigate Kodak about possible digital camera patent infringement.

Under the settlement agreement, Kodak and LG will request that the ITC end the investigations.

Kodak has pledged to ride out the tough times by focusing on businesses that generate significant amounts of cash, including digital cameras and professional printing systems, while also squeezing revenue from licensing its technology patents.

Kodak, which received a cash infusion from Kohlberg Kravis Roberts & Co [KKR.UL] in September [ID:nN16155121], said it expects a 2009 revenue decline near the high end of its estimated range of 12 to 18 percent.

Kodak shares were up 4 percent to $4.35 in afternoon trading on the New York Stock Exchange on Friday. LG shares rose 2.7 percent in South Korean trading. (Reporting by Franklin Paul, editing by Gerald E. McCormick) ((Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net)) (To read more about our Media news, visit out MediaFile blog online at blogs.reuters.com/mediafile)

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