Liquidmetal Technologies Inc (LQMT)

[The Paraclete]

While I would like to believe those who think that the restrictions on CE apply only to the patents owned by CIP at the time the agreement was signed, and to new patents developed by Apple and/or LQMT during the extension periods (which have since expired), and that new patents (such as LM106c) are exempt from the CE restrictions, that is not how the Master Transaction Agreement between Apple and Liquidmetal Technologies reads.

10.
Covenant Not to Compete.

(a)
LMT shall not, and shall ensure that its direct and indirect subsidiaries shall not, directly, or indirectly through or in association with any person, business enterprise or otherwise, (i) develop, design, manufacture, sell, offer for sale or otherwise distribute or provide any (x) Consumer Electronic Products or (y) materials, components, manufacturing services or technology for use or integration therewith; (ii) own or acquire any interest in, manage, operate, control or participate in any business which is engaged in any of the activities described in preceding subsection (i); or (iii) act as a consultant or advisor, loan or otherwise provide funds or assistance of any sort, or sell or license intellectual property to any business enterprise which is or is attempting to engage in any of the activities listed in subsection (i) or (ii) hereof.

"Consumer Electronic Products" means personal computers (portable and desktop); tablet or slate style computing devices; handheld electronic and/or communication devices (e.g., smartphones, digital music players, multi-function devices, etc.); any device whose function includes the creation, storage or consumption of digital media; any component or sub-component in any Consumer Electronic Product; and any accessory that is the same or similar (in Apple's sole discretion) to an accessory made or sold by or on behalf of Apple (regardless of when Apple sold or started to sell such accessory, including after the Closing Date) that is suitable for use with any Consumer Electronic Product.

NOTE, LQMT is prohibited from developing (future tense) components that can be used in CE. That would include the joint development of LM106c by Eon and LQMT. And as for the size of the component part, there is nothing in the agreement that says tiny parts do not count.

To summarize (and I know I’m going to get flack about this): unless Apple gives the OK, LQMT is prohibited from entering the CE market. Period! Our only hope is that Lugee can get Apple to allow LQMT to get into the CE market.