Under the terms of the license agreement, Powerchip has been granted a five year, running royalty license under MOSAID's patents for all of its non-foundry Dynamic Random Access Memory (DRAM) and Pseudo-Static Random Access Memory (PSRAM) products. Financial details of the agreement are confidential.
MOSAID initiated patent infringement litigation with Powerchip and two other defendants, ProMOS Technologies Inc. of Hsinchu, Taiwan, and Micron Technology, Inc. of Boise, Idaho, in July 2006. Mosel Vitelic, Inc., also of Hsinchu, Taiwan, was added as a fourth defendant to the complaint in November 2006. On February 4, 2008, MOSAID announced settlements with ProMOS and Mosel Vitelic. ProMOS was granted a six year, royalty bearing license under MOSAID's patents. Mosel Vitelic, which no longer manufactures DRAM products, paid MOSAID a single, lump sum amount for past shipments. Micron remains the sole defendant in the case.
"We are pleased that Powerchip decided to settle this litigation and sign a patent license agreement with us," said John Lindgren, President and Chief Executive Officer, MOSAID. "With this settlement, we have successfully reached agreement with three of the four companies involved in this litigation, and as a result have now licensed approximately 90% of the global commodity DRAM market to our patents."
"MOSAID has now signed renewable, term-based, royalty bearing patent licenses with all five of the major semiconductor memory companies in Taiwan, which has emerged as a major center of worldwide DRAM production," said Michael Vladescu, Vice President, Licensing and Intellectual Property, MOSAID. "With MOSAID's ongoing development of new memory technology, we expect to license our intellectual property to companies around the world, including renewing our term licenses with current licensees."
MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID develops semiconductor memory technology and licenses patented intellectual property in the areas of semiconductors, and wired and wireless communications systems. MOSAID counts many of the world's largest technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com.
Forward Looking Information
This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "foresee," "estimate," "expect," "intend," "could," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.
Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: the extent of embedded DRAM proliferation in the System-on-a-Chip markets; legal rulings and/or regulatory investigations or complaints having an adverse impact on the validity, enforceability, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; economic, social, and political conditions in the countries in which MOSAID or patent licensees operate, including security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by, or insolvency of, licensees or other debtors; variability in patent licensees' sales of licensed products, failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of research and development activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.
MOSAID assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at www.sedar.com.
Contacts: Investor and Media Inquiries MOSAID Technologies Inc. Michael Salter Director, Investor Relations and Corporate Communications 613-599-9539 x1205 Email Contact / www.mosaid.com