MOSAID settles litigation with major DRAM manufacturer
OTTAWA, Ontario, Canada – February 17, 2005 - MOSAID Technologies Incorporated (TSX: MSD) today announced that it has settled its patent litigation with Hynix Semiconductor Inc. and that Hynix has licensed the MOSAID patent portfolio.
On January 19, 2005, MOSAID initiated litigation against Hynix and two of its U.S.-based affiliates for infringement of six of MOSAID's United States patents in the Eastern District of Texas. In its complaint, MOSAID claimed that Hynix has infringed and continues to infringe by making and selling semiconductor products that utilize MOSAID's DRAM patents.
Today MOSAID announced that it has signed an agreement with Hynix which settles its litigation and grants Hynix a license to the MOSAID patent portfolio for a term of six years. Fixed payments by Hynix will be spread over the six-year term of the license. Under the terms of the agreement financial details cannot be disclosed.
"We are very pleased that Hynix elected to take a license to the MOSAID patent portfolio without the necessity of protracted litigation," said Jim Skippen, Senior Vice President of Patent Licensing and General Counsel. "We also believe that signing licenses in rapid succession with Samsung and Hynix, two of the world's largest DRAM manufacturers, demonstrates considerable momentum in our patent licensing program. The Hynix agreement, like all recent license agreements signed by MOSAID, is for a limited term enabling MOSAID to relicense the same patents, as well as new patents, at the end of the term. Although MOSAID initiated litigation against Hynix, we continue to prefer negotiated settlements with parties we believe are using our patented inventions. We remain willing, however, if necessary, to use the courts to ensure that MOSAID receives fair value for the use of its technology."
"Signing this license agreement with Hynix is another major achievement for MOSAID's patent licensing program," said George Cwynar, President and Chief Executive Officer for MOSAID. "This is a further testament to the strength of our patent portfolio and the expertise and experience of our patent licensing team. We expect to use this further success to bolster our efforts in licensing companies within the DRAM and embedded DRAM markets and to expand the reach of the patent licensing program."
Hynix Semiconductor joins many other major DRAM and semiconductor manufacturers who have already licensed MOSAID's patent portfolio, including Fujitsu, NEC, Toshiba, Hitachi, Mitsubishi Electric, Oki Electric, Matsushita, Winbond Electronics, Sony Corporation, Royal Philips Electronics and Samsung Electronics.
MOSAID Technologies Incorporated makes memory better through the development and licensing of intellectual property and the supply of memory test and analysis systems to semiconductor manufacturers, foundries and fabless semiconductor companies around the world.
Founded in 1975, MOSAID is based in Ottawa, Ontario, Canada, with offices in 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.