Gaining maximum value for the 1,100-plus patents being sold off is a key plank of Kodak's plans to successfully exit Chapter 11 bankruptcy protection. The patent portfolio could be worth as much as $2.6bn (£1.7bn), according to an estimate cited in court filings.

The imaging giant filed a motion seeking court approval for the sale this week.

The patent portfolio is split into two parts: Digital Capture which comprises more than 700 patents relating to image capture, processing and transmission typically used in digital cameras, smartphones and tablets. The second tranche is for some 400 Kodak Imaging Systems and Services (KISS) patents that cover techniques including image analysis and manipulation.

Kodak originally moved to sell the patents last summer, but the process stalled as its financial situation worsened. Licensing the know-how to companies including Nokia, Samsung and LG Electronics has generated more than $3bn in fees for the company over the past 11 years.

Kodak said 20 interested parties had signed confidentiality agreements and been given access to patent-related data as part of the marketing process. The auction will be confidential and restricted to qualified bidders. Only the winning bids will be revealed.

Explaining the rationale behind the auction, Kodak's chief intellectual property officer Timothy Lynch said the bidding process was designed "to allow bidders to give us their best offers without fear of showing their cards to competitors."

If the plan is approved, the patent sale will take place at the beginning of August and the results will be made known on 13 August.

Kodak's creditors will be watching proceedings closely, as gaining maximum value for the patent portfolio is fundamental to Kodak being able to pay off its debts.

However, some unsecured creditors, including Collins Ink president Lawrence Gamblin, believe there is little hope of repayment. In response to a PrintWeek investigation earlier this year into the extent of Kodak's debts to industry suppliers, he said: "Even if Kodak realises an enormous windfall from the patent sale, it is hard to see Kodak going back and repaying unsecured creditors."

Kodak was dealt a blow at the end of last month when a judge ruled that Kodak's patent infringement claim against Apple and RIM was invalid, even though Apple's iPhone 3G and RIM Blackberry devices do infringe it. A final decision on the matter by the International Trade Commission is expected by 21 September.

The patent in question - US Patent No. 6,292,218 - is part of the Digital Capture portfolio being auctioned. Apple has accused Kodak of secretly filing patent applications based on technology that Apple disclosed to Kodak when the two companies collaborated on digital camera development in the 1990s.

A further court hearing related to Apple's objection to Kodak's proposed sale of contested patents will take place today (13 June).

UPDATE: the bankruptcy judge did not reject Apple's ownership claim over 10 disputed patents, but he also said Kodak could still sell the patents in question. Potential buyers could be notified about the Apple claim, or the patents could be sold and the proceeds put into an escrow account pending resolution of the ownership wrangle.