OTTAWA, ONTARIO--Oct. 4, 2010 -- MOSAID Technologies Inc. (TSX:MSD) today announced that it has signed a multi-year, royalty bearing patent portfolio license agreement with a top-ranked, U.S.-based semiconductor supplier.
"This is the first wireless patent license agreement that we have signed with a semiconductor vendor, providing another source of licensing revenues for our wireless patents," said John Lindgren, President and CEO, MOSAID.
The five-year patent portfolio license agreement includes a series of fixed payments for a number of quarters, beginning in MOSAID's second quarter, as well as quarterly royalty payments payable throughout the license term, commencing in MOSAID's third quarter. All other financial details are confidential.
"We are very pleased to have signed a wireless patent license with a company that is one of the top five suppliers of Wi-Fi semiconductor devices worldwide," said Lindgren. "It is noteworthy that this company approached MOSAID for the purpose of obtaining a broad license that provides the company, and its customers, with the freedom to sell Wi-Fi products worldwide that operate in accordance with our patents."
Under the terms of the non-exclusive patent portfolio license agreement, MOSAID has granted the company a license under MOSAID's wireless patent portfolio covering all semiconductor products sold worldwide that operate in compliance with the IEEE 802.11 standard (commonly known as Wi-Fi). The license agreement can be automatically renewed at the end of the term. MOSAID also granted the company a license under MOSAID's microcomponents patent portfolio, covering worldwide sales of 802.11-compliant products.
MOSAID has now signed 15 wireless patent license agreements with global companies since 2008. Bookings from these existing contracts, including fixed amounts and estimated royalties, significantly exceed Cdn$100.0 million.
MOSAID has licensed its wireless patent portfolio to system-level suppliers of mobile handsets, notebook and netbook computers, wireless infrastructure products, gaming consoles and now, to a semiconductor supplier.
MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID licenses patented intellectual property in the areas of semiconductors and telecommunications systems, and develops semiconductor memory technology. 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, please visit www.mosaid.com and InvestorChannel.mosaid.com.