John Walko

EE Times

(06/14/2006 9:56 AM EDT)

LONDON — Mosaid Technologies Inc., one of the most aggressive companies in protecting its semiconductor IP, has settled its long running patent dispute with Infineon Technologies AG in a deal that sees both Infineon and its memory products spin-off, Qimonda AG, licensing the Canadian group`s patent portfolio.

The two companies have been involved in two litigations , one in the U.S. District Court for the Northern District of California, which has been under appeal; the other in the U.S. District Court for the Eastern District of Texas.

Mosaid had complained that Infineon had infringed on several of its U.S. DRAM patents.

The settlement terms involve Infineon and Qimonda both getting a six-year license to the entire Mosaid patent portfolio. In addition, the German companies will receive a `lives of the patents` license to the Mosaid IP that was the subject of the litigation.

As part of the settlement, Mosaid is buying 50 patents from Infineon and Qimonda. The portfolio includes IP related to technologies such as DRAM memory, power management ICs, semiconductor process technology and digital radio applications.

Payments for both aspects of the deal will be spread over six years, but financial details of the deal were not revealed. Payments will begin in the second quarter of fiscal 2007.

The companies are to file a joint motion requesting the Court in California to vacate the Summary Judgment Order issued on April 1st, 2005.

``This settlement is a major milestone for our patent licensing program,`` said Jim Skippen, Senior Vice President, Patent Licensing and General Counsel, Mosaid.``We are also furthering one of our important corporate goals by broadening our licensing reach beyond DRAM into different areas of technology such as power management and semiconductor process technology.``

Mosaid said the licenses and patent purchase will result in increased revenues, expenses, and profits starting in the second quarter of fiscal 2007. Taken together with the entire portion of IP revenues stemming from patent licensing being booked, the company has reset its guidance for fiscal 2007.

It said preliminary expectations for revenue for the year range between $83 million and $88 million, with net earnings between $21 million and $23 million.