MOSAID previously granted a lives-of-the-patents license to Oki Electric Industry Co., Ltd. of Japan in October 2001. In late 2008, Oki Electric spun out its semiconductor operations into a new company, Oki Semiconductor Co., Ltd., which was then immediately acquired by Rohm Co., Ltd. of Japan. As a Rohm subsidiary, Oki Semiconductor required its own license to MOSAID's patents. Oki's new five-year running royalty agreement is effective as of April 30, 2009. According to the terms of the patent portfolio license agreement, Oki's Dynamic Access Random Access Memory (DRAM) and embedded DRAM products are now licensed under MOSAID's patents.
"Similar to our license renewals with Winbond Electronics and NXP, this new agreement highlights the DRAM industry's awareness of the value of our patents," said John Lindgren, President and Chief Executive Officer, MOSAID. "Oki Semiconductor, within months of becoming unlicensed due to Oki Electric's restructuring, signed a renewable term license, thus ensuring its continued access to MOSAID's DRAM patents."
Increased deal flow
"Between 1999 and 2007, MOSAID averaged fewer than two licensing agreements per year," said Lindgren. "We then began expanding the patent portfolio and implemented a diversified licensing strategy that is now generating an increased deal flow. MOSAID signed seven deals in 2008 and to date in 2009, we have already entered into eight patent licensing agreements."
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