Eastman Kodak Health Imaging has formed a global software licensing and product development agreement with Australian healthcare information systems developer IBA Health. The deal is worth more than $17.6 million (U.S.) to IBA over the next five years, according to the Sydney-based vendor.
Under the agreement, IBA said it will license software for medical IT applications to Kodak. IBA will also collaborate with the Rochester, NY-based firm on product development efforts that fuse IBA's software with Kodak's image and information management systems.
IBA will license its software exclusively to Kodak for five years for use in all markets worldwide except for those in which IBA competes: Australia, New Zealand, and most of Southeast Asia. In the sixth year of the deal, IBA will retain rights to the software in those markets, and will transfer ownership to Kodak for the rest of the world, according to the firm.
Over the first five years, IBA will receive royalties from sales of Kodak products that incorporate the software. These royalties have a minimum guarantee of approximately $24.6 million over the five-year period, and could be higher based on sales volume.
Kodak will also compensate IBA in the amount of approximately $3.5 million for services provided in product development and related areas over the first two years.
Kodak president Dan Kerpelman said that the agreement allows the company to further serve the medical IT market worldwide.
By AuntMinnie.com staff writers
August 3, 2004
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