I assume this is good news for CRUS, but may it is not given the stocks movement today.
Any comments??
Agreement Increases Breadth of S3's Patent Portfolio
SANTA CLARA, Calif., Jan. 26 /PRNewswire/ -- S3 Incorporated
(Nasdaq: SIII) today announced that it has agreed to a $40 million patent
purchase and cross-licensing deal with Cirrus Logic, Inc. (Nasdaq: CRUS) to
enable a patent portfolio exchange between the two companies.
Through the patent purchase, S3 is buying 10 graphics patents and
25 graphics patent applications from Cirrus Logic for a price of $40 million.
With respect to Cirrus Logic's remaining patents not covered in the purchase,
and S3's patents, S3 and Cirrus Logic have entered into an accompanying
cross-licensing agreement. Under the terms of the cross-licensing agreement,
S3 and Cirrus Logic will have a perpetual license to each other's graphics
patents and additional licenses with respect to the other party's patents for
agreed upon periods of time.
Completion of both the patent purchase and cross-licensing agreement is
subject to customary closing conditions, including clearance under the
Hart-Scott-Rodino Antitrust Improvements Act.
"Through this agreement, S3 is increasing the breadth of our patent
portfolio," said Terry Holdt, chief executive officer of S3 Incorporated.
"Given our commitment to the graphics market, this addition to our
intellectual property base will be an important investment as S3 competes in
our highly competitive marketplace." |
