TWST: What is Patriot Scientific Corporation?
Mr. Turley: Patriot Scientific is a high-tech company outside of San Diego that's been around for 20 years. We are a publicly held high-tech company and like most high-tech firms that are 20 years old, we have developed a number of different products, including radar technology, communication equipment and ISDN technology. More recently the company developed a 32-bit microprocessor chip that we sold through the 1990s and in the early part of this decade. The chip was very innovative and sold reasonably well; in fact, we still sell the chip to this day. But something that came out of that chip development is that we were granted a handful of patents on some of the technologies that fit into the chip and, much to our surprise and delight, those patents turned out to be enormously valuable and helpful to us and to the market at large. So, for the last couple of years, since the summer of 2005, we have been offering those patents under license to pretty much every chip and microprocessor company in the world. It's been enormously successful for us and in the span of just two years, we have already licensed 21 companies to our patents and we have a list of literally more than 300 companies still to go.

TWST: Give us an idea of the overall platform. Is it relying on the one set of technology or is there additional development going on?
Mr. Turley: The patents were granted just a few years ago during the development of our microprocessor chip, and they have many years left to go. The patents expire around 2015, so we've got a long road ahead of us. There is a portfolio of the patents; that is, we license them as a bundle rather than having people pick and choose which of the patents is applicable for their product. We say, "You know what? Just take the whole bundle at once and that way your full product line is covered moving ahead and backward." So we license the portfolio of patents and they apply to pretty much every microprocessor chip made. It's pretty boring to list details of a patent but broadly speaking, they enable technologies to make the chips run faster, which of course is something everybody wants to do. The patents also cover ways to save energy and use less electricity, which, again, is something everybody wants to do. In our analysis, we've discovered that nearly every chip company in the world is making use of this technology and therefore it is an ideal patent licensee.

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