OTTAWA, Ontario – April 17, 2009
- MOSAID Technologies Inc. (TSX:MSD) today announced that it has granted a patent license agreement extension to NXP B.V. of the Netherlands. MOSAID has also signed a five-year running royalty patent license agreement with an unnamed U.S.-based provider of wireless networking equipment.
"Signing these agreements in challenging economic times demonstrates both the strength of our patents and the growing success of our licensing diversification strategy," said John Lindgren, President and Chief Executive Officer, MOSAID. "The agreement with NXP fulfills a key objective for fiscal 2009, as it marks MOSAID's second opportunity to renew a term license, and once again we succeeded in signing the agreement with no lapse in coverage."
"The new wireless agreement - our sixth deal since acquiring this valuable portfolio of intellectual property two years ago - shows that our wireless patents are essential to a broad range of Wi-Fi enabled products, including handsets, enterprise and consumer networking equipment, as well as laptops," said Lindgren.
The agreement with NXP extends NXP's license under MOSAID's patents for embedded Dynamic Random Access Memory (DRAM) used in its semiconductor products. The amended agreement adds an additional five years, on the same terms and conditions, to the five-year, running royalty patent portfolio license agreement entered into by Koninklijke Philips Electronics N.V. (Philips) in April 2004. In 2006, Philips established its semiconductor businesses as a separate company, NXP B.V., which assumed the patent license agreement with MOSAID. The new five-year term extends the agreement to April 30, 2014.
In addition, MOSAID has signed a running royalty wireless patent license agreement with a U.S.-based maker of enterprise wireless local area network (LAN) equipment. The company's wireless networking products, including enterprise access points, operate in accordance with the IEEE 802.11 or Wi-Fi family of standards, and are now licensed under MOSAID's patents for a five-year term that began on April 15, 2009.Update on Qimonda
MOSAID also announced that Qimonda AG (Qimonda), which is in insolvency protection, has terminated the patent licensing agreement between the two companies. The six-year agreement came into effect on July 1, 2006. As previously stated, MOSAID has credit insurance that covers the Company for four quarterly payments at 90%, up to and including the second quarter of fiscal 2010. Other than through insolvency proceedings, MOSAID does not anticipate receiving future amounts from Qimonda, resulting in a materially adverse impact on the Company.
Despite Qimonda's insolvency, MOSAID is maintaining its guidance for revenue and pro forma income for the fourth quarter of fiscal 2009 and the full fiscal year. The Company anticipates continued revenue growth going forward, and plans to offer revenue and pro forma income guidance for the first quarter of fiscal 2010 and the full fiscal year on June 25, 2009.About MOSAID
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 semiconductor companies among its customers. Founded in 1975, MOSAID is based in Ottawa, Ontario.
For more information, visit www.mosaid.com