PENTAX Becomes Seventh Major System Manufacturer During 2006 to Purchase Rights to Use Fundamental MMP Portfolio Technologies
CARLSBAD, Calif. --, June 29, 2006 -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC) confirmed today that PENTAX Corporation has agreed to purchase, pending approval by its board, a license to use the Moore Microprocessor Patent(TM) (MMP) Portfolio. Six other major system manufacturers have purchased MMP licenses this year. Prior licensees include HP, Casio, Fujitsu, Sony and Nikon as well as Seiko Epson, whose board approved this week its earlier-announced agreement to purchase an MMP license.
Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense(TM), a TPL Group enterprise, exclusively manages. The MMP Portfolio patents, filed in the 1980s, cover techniques that have become essential to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles.
"We are delighted to confirm that PENTAX is the fourth global leader to agree to purchase an MMP license this month," said David Pohl, Patriot Scientific chairman and CEO. "This further demonstrates that our MMP licensing program is strong and gaining momentum as well as increasing the mounting evidence of the strength of our jointly owned patent portfolio." He confirmed that latest reports from the licensing team indicate that now some 300 companies have been put on notice of likely infringement of one or more patents included in the MMP portfolio.
"Our roster of MMP Portfolio licensees is beginning to look like the 'Who's Who' in the world of Intellectual Property," said Mac Leckrone, Alliacense president. "PENTAX along with prior licensees are each in their own right leading developers of intellectual property; and it is therefore gratifying to have them quickly recognize the import of the fundamental technologies protected by the MMP Portfolio."
Leckrone announced that as the first-round MMP Portfolio licensing berths in many industry sectors are being captured, license rates are increasing according to plan. At this stage of the licensing program, the licensing group is continuing to focus on industry leaders whose management is empowered to make quick strategic business decisions.
"This is another event demonstrating that Patriot Scientific has successfully completed its exciting transition within the past year to become a profitable company whose primary revenues are currently based upon licenses of our valuable intellectual property," said Pohl. "In this remarkable period, we not only retired our last remaining convertible debentures to eliminate long-term debt, but we also rocked the world of microcap companies during this past fiscal quarter by the virtually unprecedented action of paying a cash dividend to shareholders -- not just once, but twice within a period of six weeks."
Pohl applauded the licensing team for having produced seven licensing agreements in the first six months of 2006. He noted that this remarkable level of success has produced advice from Patriot's attorneys and independent accountants that licenses are no longer extraordinary events for the company for which notice and information on Form 8-K must be filed with the SEC each time a license agreement is signed. Now that, in most instances, the requirements to file notices of license events with the SEC no longer apply, the result is that various contractual confidentiality clauses are now fully applicable and that exceptions to such agreements that were related to the SEC filing requirements are no longer available to the company.
"This means that the company finds itself in the difficult position of wanting to share the exciting details of license revenues at the time the licenses are announced, yet we are legally prevented from doing so," Pohl stated. "As a result, investors expecting to learn the dollar amounts of revenues received by Patriot Scientific in connection with recent and future licenses will find that such information will be available only as included in regular quarterly financial statements filed by Patriot with the SEC."
The Patriot Scientific Board of Directors is considering additional strategic moves intended to enhance the strength and profitability of the company for the benefit of its shareholders, Pohl added. "As we accumulate capital resulting from licensing revenues, we are evaluating possible opportunities to diversify our revenue stream by engaging in joint ventures or acquiring other companies or technologies compatible with our business focus -- all depending, of course, upon future revenue and the board's determination of prudent, feasible action in light of available capital and market conditions at the time," he concluded.
About Patriot Scientific
Patriot Scientific is a leading intellectual property licensing company that develops, markets and enables innovative technologies to address the demands in fast-growing markets such as wireless devices, smart cards, home appliances and gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices and industrial controllers. Headquartered in Carlsbad, Calif., information about the company can be found at http://www.ptsc.com .
Detailed information about Patriot Scientific can be found at http://www.ptsc.com . Copies of Patriot Scientific press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com . An investment profile on Patriot Scientific may be found at http://www.hawkassociates.com/patriot/profile.php .
About the Patent Portfolio
The patent portfolio, marketed as the Moore Microprocessor Patent Portfolio, contains intellectual property that is jointly owned by publicly held Patriot Scientific Corporation and the privately held TPL Group. The portfolio encompasses seven U.S. patents as well as their European and Japanese counterparts. Both TPL and Patriot assert that their jointly owned patents protect techniques used in designing microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group Enterprise.
Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of intellectual property licensing programs. As a cadre of IP licensing strategists, technology experts and experienced business development/management executives, Alliacense focuses on expanding the awareness and value of TPL's intellectual property portfolios. For more information, visit http://www.alliacense.com .