Patriot Scientific Announces Breakthrough Patent Licensing Agreement with Fujitsu; Fujitsu Joins Global Giants HP, Casio, Intel and AMD in Recognizing Need to License MMP(TM) Core Microprocessor Technologies
SAN DIEGO, Calif.--(Business Wire)--March 2, 2006--
Patriot Scientific Corporation (OTC Bulletin Board:
PTSC.OB) today announced that Fujitsu Limited has become the latest global system manufacturer to purchase a license to use intellectual property protected by the Moore Microprocessor Patent(TM) (MMP) Portfolio. Patriot and The TPL Group are co-owners of the MMP Portfolio, which is being exclusively managed by Alliacense, a TPL Group enterprise. This license represents a settlement of patent disputes between Fujitsu and the owners of the MMP Portfolio.
In striking this licensing agreement, Fujitsu joins Casio,
Hewlett-Packard, AMD and Intel in licensing Patriot's core patents impacting virtually every microprocessor manufactured since 1994. Casio struck its licensing deal last month, HP signed a licensing agreement in January, and both AMD and Intel negotiated licenses in 2005. Terms of the Fujitsu license were not disclosed.
Fujitsu had been one of four major Japanese electronics
manufacturers against whom broad-based patent infringement claims had been filed last October by The TPL Group in the Federal District Court of East Texas on behalf of the MMP Portfolio. Today's announcement further substantiates the need for modern system manufacturers to secure MMP Portfolio licenses to cover the entire spectrum of their digital product lines.
"This major licensing agreement -- the third in just over a month -- marks yet another confirmation of the significance of the patents we jointly own." said Patriot's Chairman and CEO David Pohl. "We are pleased that this decision by Fujitsu represents yet another notable step in our ongoing effort to realize the monetary value of our portfolio for the benefit of our Company and ultimately our shareholders."
"The Fujitsu, Intel, AMD, HP and Casio licensing agreements set a strong precedent for more than 150 other high tech manufacturers that were notified in 2004 that they were infringing upon our patents and were invited to obtain appropriate licenses," Pohl noted. "Our Licensing Program rewards first movers in their industry sectors with substantial discounts," said Mac Leckrone, President of Alliacense. "By design, our licensing structure enables nimble and forward-thinking system manufacturers to disadvantage their competitors." He confirmed that Alliacense has contacted hundreds of system manufacturers around the globe, and that competition for early-round licensing berths in key market sectors has become intense.
According to Leckrone, whose firm exclusively markets the MMP
Patent Portfolio on behalf of Patriot Scientific, the broad range of system-level digital products exploiting MMP Portfolio design techniques is extensive. In addition to computers and related hardware, consumer electronic products ranging from televisions, digital cameras and portable music players, high-tech medical equipment, office automation products, aerospace and even automotive electronics systems are all designed with multiple semiconductor devices that use MMP Portfolio technologies.
"Once digital hardware vendors recognize their broad reliance on the intellectual property protected by the MMP Portfolio, they appreciate the critical need to secure continued access to the fundamental MMP technologies," Leckrone noted. "System-level coverage is essential to maintaining product design freedom and avoiding supply-chain disruptions."
Patriot's Dramatic Turn-Around Continues
"This strategically significant licensing agreement with Fujitsu further validates our confidence in the superb Alliacense team of licensing professionals. The financial benefits we have realized as a result of their Olympic-quality representation have made a major contribution to the fiscal strengthening of Patriot Scientific," said Pohl.
Patriot Scientific's market cap reached a level of $364.14 million as of the close of trading on March 1, 2006 -- having soared upward from $25 million in just over a month.
Last month, Patriot Scientific announced it would retire all
outstanding debentures -- along with the signing of an agreement giving it the option to buy back what could amount to up to approximately 20 percent of the Company's total outstanding stock warrants. Additionally -- in an action which is virtually unprecedented among microcap stocks -- Patriot announced that it would pay a cash dividend of $.02 per share to shareholders and qualified warrant holders of record as of February 24, 2006. This payment will be issued on March 22, 2006.
Until mid-2005, Patriot had never before shown a quarterly profit, and had never before realized significant revenue from its seminal microprocessor innovations. However, in the past year, the Company's jointly owned patent portfolio has been successfully licensed - through its marketing alliance with The TPL Group's Alliacense division - to Intel, HP and AMD. These first licensing agreements have generated disbursements to Patriot of more than $25 million. Revenues from the recent Casio and Fujitsu licenses have not yet been disclosed.
Patriot Media Relations
Attention Group
Daryl Toor, 770-777-9489
dtoor@attentiongroup.com
or
Patriot Investor Relations
Hawk Associates
Frank Hawkins/Julie Marshall, 305-451-1888
info@hawkassociates.com
Copyright Business Wire 2006
02Mar06 14:02 GMT
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