One Step Ahead

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PTSC: Article in beautiful San Diego newspaper.

By: Mel7
23 Feb 2005, 11:56 AM EST
Msg. 545185 of 545188
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PTSC article: Feb 23, 2005 (The San Diego Union-Tribune - Knight Ridder/Tribune Business News
via COMTEX) -- Patriot Scientific Corp.'s stock rose 78 percent yesterday, after
the company announced that chip-maker AMD had purchased restricted shares in the
San Diego company and had licensed some of its microprocessor technology. Shares
of Patriot Scientific, which is traded on the over-the-counter bulletin board,
closed at 25 cents, up from 14 cents. The terms of the deal are confidential,
said Lowell Giffhorn, Patriot Scientific's chief financial officer.

By paying Patriot Scientific licensing fees and investing in the small Rancho
Bernardo company, Sunnyvale-based AMD has removed itself as a potential target
of a lawsuit by Patriot Scientific, which has been suing companies to enforce
its patents for microprocessor technology. In December 2003, the company filed
patent infringement lawsuits against five Japanese computer makers, including
Sony, Fujitsu and Toshiba America, accusing them of using a Patriot Scientific's
microprocessor patent without authorization.

In turn, Intel Corp., the largest chip-maker in the world, filed suit against
Patriot Scientific in an effort to get a federal judge to declare that it was
not infringing on Patriot Scientific's microprocessor patent. In February 2004,
Patriot Scientific filed suit against a co-inventor of some of the technology to
clarify the ownership of the patents. The suits are pending.

The main patent in question is for a variable-speed microprocessor system clock
that Patriot Scientific says is used on computer processors of 125 megahertz and
faster.

Patriot Scientific's main product, microprocessors, has failed to generate any
significant revenue for the company. For the quarter ended Nov. 30, Patriot
Scientific reported revenue of $18,748 and a net loss of $1 million. In its
second-quarter earnings report, Patriot Scientific said it anticipates its
future revenue will be derived primarily from the sale of licenses, royalties
and the proceeds from litigation or settlements of patent infringement cases.


By Kathryn Balint

To see more of The San Diego Union-Tribune, or to subscribe to the newspaper,
go to http://www.uniontrib.com.