InterDigital Acquires Exclusive Licensing Rights to Tantivy Communications' CDMA2000 Patents
Press Release Source: InterDigital Communications Corporation
InterDigital Acquires Exclusive Licensing Rights to Tantivy Communications' CDMA2000 Patents
Monday November 11, 1:51 pm ET
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Nov. 11, 2002--InterDigital Communications Corporation (Nasdaq:IDCC - News), a leading architect, designer and provider of wireless technology and product platforms, today announced that IPR Holdings Delaware, Inc. (IPR), a wholly-owned subsidiary, has acquired exclusive licensing rights to certain patents and patent applications held by Tantivy Communications, Inc.
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The portion of the Tantivy patent portfolio covered by the exclusive license includes over 200 patents and patent applications issued or filed worldwide. Among the inventions covered by the patents are techniques for enabling switching efficiency and managing system capacity which InterDigital believes are essential to CDMA2000 products.
As a result of the transaction, InterDigital also will have a non-exclusive license to utilize Tantivy's smart antenna patents in the Company's TDD products.
Under the terms of the agreement, Tantivy will receive $1.5 million in three installments. Initial installment payments totaling $1.05 million were paid following execution of the agreement. An additional payment of $450,000 is due to be paid in the first quarter of 2003.
Maximum potential aggregate payments under the agreement range from $15 million to $24 million dependent upon certain defined conditions, primarily as a pro-rata share of future patent license royalties collected on CDMA2000 product sales under new agreements which include the Tantivy patents.
Tantivy retained licensing rights for the technology it has developed for its I-CDMA technology, which is Committee T1 approved to be an ANSI Standard for Wireless Wideband Internet Access (WWINA) products. Tantivy also retained limited rights under certain patents for FDD products.
In addition, IPR Holdings established a strategic marketing relationship with Tantivy under which it will market Tantivy's smart antenna technology and patents for certain 2G and 3G products. The marketing effort will be conducted in connection with the ongoing licensing activities of InterDigital Technology Corporation (ITC).
The joint marketing agreement covers the wireless communications markets of Japan, China, Korea and Taiwan.
In a third separate transaction, Tantivy also entered into a royalty-bearing, worldwide license agreement with ITC under its patents covering the manufacture and sale of 3G products.
"This agreement with Tantivy Communications further strengthens our existing CDMA2000 patent portfolio and broadens our offering to potential licensees and partners," said Howard Goldberg, President and CEO of InterDigital Communications. "Becoming a marketing and licensing channel for Tantivy's portfolio of smart antenna patents and technology in Asia is a positive reflection on the strength of InterDigital's business relationships in the region and on our world-class licensing capability. We look forward to working with Tantivy in extending and expanding the impact of their advanced work in CDMA2000 and smart antennas."
"We are pleased to enter into a licensing and marketing relationship with a recognized global leader in digital communications," said Lisa Kolb, Tantivy's President. "This relationship synergistically combines Tantivy's high mobility and subscriber based smart antenna technology with the global licensing and marketing strengths of the InterDigital companies."
About Tantivy
Tantivy Communications, Inc. is a developer of wireless data communications technology. Tantivy has developed a portfolio of technologies, which includes innovations for all emerging mobile wireless data standards - 3GPP WCDMA, 3GPP2 CDMA2000, IEEE 802.11, and T1P1 WWINA, - including subscriber based smart antennas.
Tantivy's smart antenna solutions are based on antenna and steering algorithm technology. Tantivy also has developed a fully IP-based, end-to-end solution, (based on its I-CDMA technology, which is Committee T1 approved to be an ANSI Standard for Wireless Wideband Internet Access (WWINA) products) for portable, wireless broadband Internet access.
Tantivy licenses its technology to manufacturers of silicon, consumer Internet appliances, and infrastructure equipment. A privately held company located on Florida's Space Coast in Melbourne, Tantivy was founded in February 1997. For additional information about Tantivy, visit the company's web site at tantivy.com.
About InterDigital
InterDigital architects, designs and provides advanced wireless technologies and products that drive voice and data communications. The Company offers technology and product solutions for mainstream wireless applications that deliver cost and time-to-market advantages for its customers.
InterDigital has a strong portfolio of patented technologies covering 2G, 2.5G and 3G standards, which it licenses worldwide. For more information, please visit InterDigital's web site: www.interdigital.com.
This press release contains a forward-looking statement regarding InterDigital's expectations as to the essential nature of our patents and the Tantivy patents, and our ability to productize our TDD technology, market Tantivy's smart antenna technology and collect royalties on the sale of CDMA2000 products. The actual outcome could differ materially from that expressed in such a forward-looking statement due to a variety of factors including, but not limited to: (i) the market relevance of our technologies; changes in technology preferences of strategic partners; unanticipated development costs, technical, financial or other difficulties or delays related to the development of our technologies and products; the availability or development of substitute technologies or competition from competitive technologies; our ability to leverage our existing strategic relationships and enter into additional strategic relationships; the ability of our semiconductor partner(s) to provide capacity, and the availability of adequate manufacturing and distribution networks; and (ii) the implementation of design-arounds to Tantivy's patents; and differing interpretations of and changes to standards; and (iii) our ability to successfully market the smart antenna patents and technology, our ability to enter into additional licenses, the performance of our licensees in selling their products, our ability to adequately enforce and protect our patents and other intellectual property rights, and developments in patent litigation matters; as well as other factors listed in the Company's most recently filed Forms 10-K and 10-Q, respectively. InterDigital undertakes no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
InterDigital is a registered trademark of InterDigital Communications Corporation. Tantivy and I-CDMA are trademarks of Tantivy Communications, Inc. All other trademarks are the property of their respective owners.
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Contact:
InterDigital Communications Corporation
Media Contact:
Guy Hicks, 610/878-7800
email: guy.hicks@interdigital.com
or
Investor Contact:
Janet Point, 610/878-7800
email: janet.point@interdigital.com |
