OTTAWA, Ontario - December 19, 2002 - MOSAID Technologies Incorporated (TSE:MSD) today announced that Infineon Technologies North America Corporation has filed a Complaint for Declaratory Judgement in the Northern District of California seeking a declaration of non- infringement, invalidity and unenforceability with respect to seven of MOSAID's United States patents.
MOSAID has been in negotiations with Infineon for a lengthy period of time but the parties could not reach agreement on the value of a MOSAID patent license. Infineon stated in its Complaint that it commenced this action because it believed MOSAID intended to file a patent infringement action against it.
"It is our position that Infineon Technologies has infringed and is continuing to infringe many MOSAID patents," said Jim Skippen, Vice-President and General Counsel for MOSAID. "We are currently reviewing our options regarding the Infineon Complaint with our outside legal counsel. MOSAID believes there is no merit to this Complaint and plans to file a response in due course."
The patents referenced in the Infineon Complaint are the same seven patents that are the subject of a lawsuit by MOSAID against Samsung in the New Jersey District Court. Seven other major semiconductor manufacturers have already taken a license to the patents at issue.
The seven patents at issue in this Complaint were granted to MOSAID on fundamental Dynamic Random Access Memory (DRAM) circuit inventions, which it pioneered as a semiconductor design company. MOSAID has developed nine generations of DRAM, from 4K to 256M, during its 27-year history. During this time, MOSAID invented a number of circuits that have been widely adopted by the DRAM industry. At the end of the second quarter of fiscal 2003, MOSAID's portfolio contained 422 issued or pending patents.
Since 1999, MOSAID has signed comprehensive patent licensing agreements with seven companies: Fujitsu, NEC, Toshiba, Hitachi, Mitsubishi Electric, OKI Electric and Matsushita. MOSAID believes that all companies which manufacture mainstream DRAM products, including single and double data rate (DDR) synchronous DRAM, as well as Rambus® DRAM, use its patented circuit technology. MOSAID currently has twelve companies on notice for patent infringement and is in active licensing discussions with several of them at this time.
MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions:
- Semiconductor - a fabless provider of networking chips
- Intellectual Property - a licensor of intellectual property to semiconductor manufacturers worldwide
- Systems - the leading supplier of engineering memory test and analysis systems to memory manufacturers, foundries and fabless chip companies.
Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in Austin, Texas; Santa Clara, California; Newcastle upon Tyne, U.K; and Tokyo, Japan. For more information, visit the Company's web site at www.mosaid.com.
Forward Looking Information
This document may contain forward-looking statements relating to the Company's operations or to the environment in which the Company operates. Such statements are based on current expectations that are subject to a variety of risks and uncertainties that are difficult to predict and/or beyond MOSAID's control. Actual results may differ materially from those expressed in any forward-looking statements, due to factors such as customer demand and timing of purchasing decisions, product and business mix, competitive products, pricing pressures as well as general economic and industry conditions. MOSAID assumes no obligation to update these forward-looking statements, or to update the reasons why actual results could differ from those reflected in any forward-looking statements. Additional information identifying risks and uncertainties is contained in other public filings with the Ontario Securities Commission.
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