MOSAID Technologies Inc.
TSX : MSD

MOSAID Technologies Inc.

February 18, 2009 08:30 ET

MOSAID Expands Into New Markets With Acquisition of 300 Communications Patents

OTTAWA, ONTARIO--(Marketwire - Feb. 18, 2009) - MOSAID Technologies Inc. (TSX:MSD) today announced that it has acquired a significant portfolio of 300 patents from SercoNet Ltd. The new portfolio of wired and wireless communications patents will enable MOSAID to expand its licensing activity into the enterprise and consumer communications, networking, and Internet access markets.

"A key element of our growth strategy, along with continuous innovation, is to expand and diversify our patent licensing activities into new markets through the acquisition of rigorously selected patent portfolios," said John Lindgren, President and Chief Executive Officer, MOSAID. "These are strong, tested patents, and we look forward to seeing them deliver new licensing revenues."

Under the terms of the patent purchase agreement, MOSAID receives full title to the portfolio for an undisclosed amount, paid over the next four months. MOSAID will also pay SercoNet a percentage of the net royalty revenues earned from licensing these patents to third parties.

The acquired portfolio relates to wired and wireless communications products and systems. These include Power over Ethernet (PoE), Voice over Internet Protocol (VoIP), IP Private Branch Exchanges (IP-PBXs), Wireless Access Points (WAPs), IP Digital Subscriber Line Access Multiplexers (IP-DSLAMs), cable modems, and Asynchronous DSL (ADSL) modems. The portfolio is geographically diverse, with U.S, European and Asian patents and patent applications.

With this new portfolio, MOSAID will begin granting patent licenses in a range of well established and growing markets, from PoE-enabled data switches, IP-PBXs and IP telephones, to home networking and Powerline plug-ins. The new patents also complement MOSAID's licensing activity in the communications router and wireless access point markets.

About MOSAID

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 wired and wireless communications 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 www.mosaid.com.

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: the extent of embedded DRAM proliferation in the System-on-a-Chip markets; legal rulings and/or regulatory investigations or complaints having an adverse impact on the validity, enforceability, 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; economic, social, and political conditions in the countries in which MOSAID or patent licensees operate, including 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 research and development 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.

MOSAID assumes no obligation to update or revise any forward-looking statements. 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 www.sedar.com.

Contact Information

  • Investor and Media Inquiries:
    MOSAID Technologies Inc.
    Michael Salter
    Director, Investor Relations and Corporate Communications
    613-599-9539 ext., 1205
    salter@mosaid.com