MOSAID Technologies Inc.
TSX : MSD

MOSAID Technologies Inc.

May 10, 2011 08:31 ET

MOSAID Initiates Patent Infringement Litigation Against Elpida

OTTAWA, ONTARIO--(Marketwire - May 10, 2011) - MOSAID Technologies Inc. (TSX:MSD) today announced that it has commenced patent infringement litigation against Elpida Memory, Inc. of Japan. Two other companies, Buffalo Inc. and Axiontech, are also named as defendants in the suit, which was filed on May 10, 2011, in the United States District Court for the Eastern District of Texas, Tyler Division.

MOSAID asserts that Elpida, Buffalo, and Axiontech have infringed and are infringing six of its semiconductor memory patents by making, using, importing, offering for sale and/or selling Dynamic Random Access Memory (DRAM) and/or other products containing DRAM, in the United States.

Elpida is the world's third-largest producer of commodity DRAM products, with 16% market share and total revenues of US$6.3 billion in 2010.

"Elpida is the only major manufacturer of commodity DRAM products that is currently unlicensed to MOSAID's semiconductor memory patents," said John Lindgren, President and CEO, MOSAID. "We have been in active negotiations with Elpida, but have now concluded that we are unlikely to reach a fair settlement within a reasonable timeframe. As a result, we have filed suit to protect the Company's intellectual property rights and to advance the interests of our shareholders."

"Since 1999, MOSAID has signed 28 patent license agreements for our DRAM and other semiconductor memory patents," said Lindgren. "Not only have we signed patent license agreements with all other major DRAM manufacturers, we have also renewed our agreements with several of these global companies. We firmly believe that Elpida requires a license to MOSAID's memory patents, similar to all the other major DRAM companies."

About MOSAID

MOSAID Technologies Inc. is one of the world's leading intellectual property companies. MOSAID licenses patented intellectual property in the areas of semiconductors and communications systems, and develops semiconductor memory technology. 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, please visit www.mosaid.com and http://investorchannel.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," "could," "estimate," "expect," "foresee," "intend," "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; semiconductor and telecommunications product vendors 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. Accordingly, readers should not place undue reliance on forward-looking statements. If we do update one or more forward-looking statements, no inference should be drawn that additional updates will be made with respect to those or other 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

  • MOSAID Technologies Inc.
    Michael Salter
    Senior Director, Investor Relations
    and Corporate Communications
    613-599-9539 x1205
    salter@mosaid.com