Zeev's Turnips Patch-No Politics (ZEEV)

[JLSegal]

"Patriot Scientific believes that its U.S. Patent No. 5,809,336, "High Performance Microprocessor Having Variable Speed System Clock" (the '336 Patent) applies to any microprocessor on any device running at a clock speed higher than 120 MHz and thus has significant commercial value. The company's strong patent position has enabled it to launch an aggressive intellectual property compliance program targeted at hundreds of companies using microprocessors with internal capabilities greater than 120 MHz. This is estimated to be well in excess of a $200 billion market.

The '336 Patent is listed in the Patent and Trademark Office (PTO) along with several other Patriot Scientific patents, as having been co-invented by Russell H. Fish, III, and Charles H. Moore. Some years ago, Fish's interests in these patents were transferred to the Fish Family Trust, then to Nanotronics Corporation, then to Patriot, which now owns 100% of Fish's interests in these patents, including the '336 Patent. Discovery in the inventorship litigation strongly suggests that Fish was the sole inventor of the '336 Patent. If so, he was then its sole owner and Patriot is now its sole owner.

In December 2003 the company filed lawsuits in several U.S. district courts against companies Ñ Sony Corporation of America, Fujitsu, Toshiba America, Inc., NEC USA, Inc., and Matsushita Ñ that it believes are infringing the '336 entitled "High Performance Microprocessor Having Variable Speed Clock." Patriot Scientific has asked the courts to enjoin the defendants from making use of the PTSC patent and are requesting damages for past infringements. In February, with the consent of the defendants, the above five actions were consolidated into the Fujitsu action.

In December 2004, Patriot Scientific learned of a license agreement dated June 28, 2004 between Intel Corporation and Charles H. Moore (Moore), TPL Micro Ltd. (TPL Micro) and Technology Properties Ltd. (TPL) (Moore, TPL Micro Ltd and TPL are collectively the licensors). This agreement provides Intel with, among other things, a non-exclusive, irrevocable, non-terminable, worldwide license to make, have made, use, license, distribute and sell Intel products that practice the U.S. 5,809,336 Patent.

Patriot Scientific believes the agreement between Intel and the licensors demonstrates the validity of the '336 patent. PTSC strongly maintains and believes the evidence, which will be submitted at trial, will demonstrate that it is the sole owner of this patent, which has enormous commercial value. Patriot Scientific maintains that Intel and other companies who execute licensing agreements with Moore, TPL Micro Ltd and TPL are assuming significant risk for their respective companies in licensing technology for which Moore, TPL Micro Ltd. and TPL have no legitimate ownership if Fish is determined in litigation to have been the sole inventor.

In February 2005, Patriot Scientific reached an agreement with AMD (NYSE: AMD) in which AMD purchased restricted shares from PTSC, obtained rights to manufacturer and sell the PTSC IGNITE 32-bit stack microprocessor and obtained rights to Patriot’s 'ShBoom' microprocessor patent portfolio in its entirety. AMD was the first company to license the 'ShBoom' microprocessor portfolio from PTSC. Terms of the agreements were not disclosed.

The company believes the agreements with AMD represent a watershed moment for PTSC and that its patent portfolio will benefit both companies for many years to come."

http://www.hawkassociates.com/patriot/text.htm