Under the terms of the patent license agreement, Micron receives a 10-year license to certain of MOSAID's patents, including a life-of-patents license for all such patents through a defined capture period and a term license for subsequent patents. Micron's Dynamic Random Access Memory (DRAM), Flash, and other memory and image sensor products are licensed under the agreement. Micron will make a series of fixed cash payments to MOSAID.
Under the patent transfer agreement, MOSAID will acquire title to 400 Micron patents. The portfolio consists of patents related to DRAM, Flash memory, and semiconductor process technology. In the first four quarters after the effective date, MOSAID will make fixed payments to Micron, which amount will be credited against future payment obligations to Micron pursuant to royalty revenue sharing terms. All other terms and conditions of the patent license agreement and the patent purchase agreement are confidential.
"By settling the litigation and signing a patent license agreement with Micron, one of the world's largest DRAM producers, we have achieved our goal of licensing virtually 100% of the global commodity DRAM market to our patents," said John Lindgren, President and Chief Executive Officer, MOSAID. "The transfer of a large number of patents from Micron - an innovative company that is known for the strength of its patents - will contribute greatly to MOSAID's semiconductor patent licensing program."
"We are pleased with the accord Micron has reached with MOSAID. These agreements provide us with a license to MOSAID's patents while providing the opportunity for substantial value over time in recognition of Micron's industry-leading innovations," said Rod Lewis, Micron's Vice President of Legal Affairs and General Counsel.
Micron and MOSAID have been engaged in patent infringement litigation since July 2006. The two companies have agreed to file a joint motion in the U.S. District Court for the Northern District of California to dismiss with prejudice all claims.
Management will hold a conference call and webcast on Monday, February 2, 2009 at 5:00 p.m. EST to discuss the settlement and agreements with Micron, and other licensing activities. The webcast will be live at www.mosaid.com and may also be accessed by dialing 1-800-264-7882. The webcast will be available on MOSAID's web site for 90 days following the event.
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 technology companies among its licensees. Founded in 1975, MOSAID is based in Ottawa, Ontario. For more information, visit www.mosaid.com.
Micron Technology Inc. is one of the world's leading providers of advanced semiconductor solutions. Through its worldwide operations, Micron manufacturers and markets DRAMs, NAND flash memory, CMOS image sensors, other semiconductor components, and memory modules for use in leading-edge computing, consumer, networking and mobile products. Micron's common stock is traded on the New York Stock Exchange (NYSE) under the MU symbol. To learn more about Micron Technology, Inc., visit www.micron.com.
Micron and the Micron orbit logo are trademarks of Micron Technology, Inc. All other trademarks are the property of their respective owners.
Forward Looking Information
This document and certain other public documents incorporated by reference in this document, contain forward-looking statements to the extent they relate to MOSAID or its management, including those identified by the expressions "anticipate," "believe," "foresee," "estimate," "expect," "intend," "could," "may," "plan," "will," "would" and similar expressions. Similarly, statements in this document that describe MOSAID's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. These forward-looking statements are not historical facts, but rather reflect MOSAID's current expectations regarding future events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results, performance or achievements to differ materially from those in such forward-looking statements. Assumptions made in preparing forward-looking statements and financial guidance include, but are not limited to, the following: MOSAID's continued expansion of its patent portfolio and of its opportunities for future patent licensing revenue as a result of MOSAID's acquisition of patents from third parties and from development of new inventions; DRAM manufacturers continuing to infringe MOSAID's patents; the timing and amount of MOSAID's litigation expenses; MOSAID's ability to sign new patent licensees; current assumptions as to the identification of products that are unlicensed to MOSAID's wireless patents; and the timing and amount of MOSAID's Research & Development expenses.
Factors that could cause actual results to differ materially from expected results include, but are not limited to, the following: the extent of embedded DRAM proliferation in the System-on-a-Chip markets; legal rulings and/or regulatory investigations or complaints having an adverse impact on the validity, enforceability, potential royalty rates, and strength or breadth of coverage of MOSAID's essential and/or nonessential patents (including, but not limited to, adverse results from litigation or proceedings in patent offices and government regulatory agencies in various countries around the world); judicial, legislative or regulatory changes that impair the ability of patent holders to earn licensing revenues; economic, social, and political conditions in the countries in which MOSAID or patent licensees operate, including security risks, health conditions, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; non-payment or delays in payment by, or insolvency of, licensees or other debtors; variability in patent licensees' sales of licensed products, failure to maintain and enforce MOSAID's existing patent portfolio, or failure to obtain valuable patents as a result of research and development activities, or failure to acquire valuable patents from third parties; MOSAID's ability to recruit and retain skilled personnel; change in MOSAID's financial position; consolidation of MOSAID's licensees; natural events, such as severe weather and earthquakes in the locations in which MOSAID or patent licensees operate; and changes in the tax rate applicable to MOSAID as the result of changes in the tax law in the jurisdictions in which profits are determined to be earned and taxed, the outcome of tax audits and the ability to realize deferred tax assets.
MOSAID assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties affecting MOSAID's business and other factors that could cause MOSAID's financial results to fluctuate are contained in MOSAID's Annual Information Form, under the section entitled "Risk Factors," and in MOSAID's other public filings available online at www.sedar.com.
Contacts: MOSAID Technologies Michael Salter 613-599-9539 ext. 1205 Email Contact Micron Technology Daniel Francisco 208-368-5584 Email Contact