The detection of rapidly damped transverse oscillations in coronal loops by Aschwanden et al. (1999) and Nakariakov et al. (1999) gave a strong impetus to the study of MHD waves and their damping. The common interpretation of the observations of these oscillations is based on kink modes. This paper reviews how the observed period and damping time can be reproduced by MHD wave theory when non-uniform equilibrium models are considered that have a transversal variation of the local Alfven velocity. The key point here is that resonant absorption cannot be avoided and occurs as natural damping mechanism for kink waves in non-uniform equilibrium models. The present paper starts with work by Hollweg & Yang (1988) and discusses subsequent developments in theory and their applications to seismology of coronal loops. It addresses the consistent use of observations of periods and damping times as seismological tools within the framework of resonant absorption. It shows that within the framework of resonant absorption infinitely many equilibrium models can reproduce the observed values of periods and damping times.