MOSAID Technologies Inc.

MOSAID Technologies Inc.

January 18, 2010 08:50 ET

MOSAID and Samsung Reach Comprehensive Agreement

Sign patent license and patent purchase agreements, and technology MOU

OTTAWA, ONTARIO--(Marketwire - Jan. 18, 2010) - Editors note: A link to a video is provided for this press release. Please go to:

MOSAID Technologies Inc. (TSX:MSD) today announced that it has signed a new semiconductor patent license agreement with Samsung Electronics Co., Ltd. MOSAID will also purchase a significant portfolio of patents from Samsung. In addition, the two companies have entered into an MOU (Memorandum of Understanding) pursuant to the development of NAND Flash technology.

Under the terms of the patent portfolio license agreement, Samsung receives a lives-of-patents license under certain patents and applications, and a five-year term license under certain other patents and applications, for memory integrated circuit products. Samsung also receives a five-year license under certain patents and applications for non-memory integrated circuit products. For the license, Samsung will make a series of fixed payments during the term. The effective date of the license is January 1, 2010. All other terms and conditions of the license agreement are confidential.

Under the terms of the patent purchase agreement, MOSAID will purchase from Samsung a portfolio of patents related to semiconductor device, circuit and processing technologies. A series of fixed payments is due to Samsung in 2014.

Under the terms of the MOU, Samsung and MOSAID will explore the potential joint development of a new high-performance NAND flash memory device incorporating MOSAID's HLNAND™ memory architecture.

"Taken together, these agreements with Samsung are among the most important the Company has signed in its history," said John Lindgren, President and CEO, MOSAID. "The new semiconductor patent license agreement helps stabilize MOSAID's current revenue stream and provides continued financial strength, while our patent portfolio is made even stronger with the acquisition of a significant number of semiconductor patents from Samsung. We are also very excited to be working on future technologies with Samsung, the world's leading memory vendor."

"These new agreements demonstrate the growing value of our portfolio of semiconductor memory and microcomponent patents, and provide further confirmation of our success as an intellectual property company focused on patent licensing and technology innovation," said Michael Vladescu, Vice President, Licensing and Intellectual Property, MOSAID. "In addition to licensing our memory patents, Samsung is the second company to license our microcomponent portfolio, which includes both MOSAID patents and patents exclusively licensed from third parties."

Prior to today's announcement, MOSAID and Samsung had, on January 4, 2010, announced a standstill agreement that covered the period between the expiration of MOSAID's existing semiconductor patent licensing agreement with Samsung on December 31, 2009, and the approval of a new agreement by the Board of Directors of both MOSAID and Samsung.


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 telecommunications 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

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: MOSAID's ability to negotiate settlements with licensees; legal rulings and/or regulatory investigations, audits or complaints having an adverse impact on the validity, enforceability, royalty rates, 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; worldwide economic conditions and demand for technology products; economic, social, and political conditions both globally and in the countries in which MOSAID or patent licensees operate, including conflict, war and, other 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 R&D 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.

Except as may be required by applicable law or stock exchange regulation, we undertake no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. 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

Contact Information

  • MOSAID Technologies Inc.
    Investor and Media Inquiries - Michael Salter
    Director, Investor Relations and Corporate Communications
    613-599-9539 x1205