Patriot Scientific Corporation (PTSC) announced on Friday that company and The TPL Group have jointly reached an agreement to resolve and settle all claims and issues between them regarding their Joint Venture for the commercialization of the MMP Portfolio.
On October 6, 2011, Patriot Scientific Corporation (the “Company”) entered into a settlement agreement with Technology Properties Limited LLC (“TPL”), pursuant to which the Company and TPL settled all claims relating to their current litigation. A description of the litigation is contained in the Company’s Form 10-K for the fiscal year ended May 31, 2011, under the caption “TPL Litigation” at Item 3. Legal Proceedings.
Pursuant to the terms of the settlement agreement, TPL has agreed to have PDS allocate to the Company $1,100,000 at the rate of five and ten percent of future distributions due to TPL as a member of PDS; TPL has agreed to increased review and procedures by PDS and the Company on all MSD licensing; the Company has agreed to have PDS pay TPL for certain litigation and reexamination support services at the rate of $172,000 for June 2011, and $86,000 per month thereafter until 60 days after the Markman hearing in the current patent infringement litigation; and the parties have agreed to established guidelines and procedures relating to proposed license arrangements to be entered into by TPL involving the MSD Patents and one or more other patents within TPL’s portfolio that is not an MSD Patent, and a procedure for allocating revenue between the MSD Patents and the non-MSD Patents, if needed.
Patriot Scientific Corporation
701 Palomar Airport Road
Carlsbad, CA 92011-1045
Tel: (760) 547-2700
Fax: (760) 547-2705
Patriot Scientific has primarily been an intellectual-property licensing company with several patents covering the design of microprocessor chips. Chips with Patriot’s patented technology are used throughout the world in products ranging from computers and cameras to printers, automotive and industrial devices.
- Current cash generation is predominantly licensing revenues from Patriot’s Moore Microprocessor Patent™ Portfolio which contains intellectual property that is jointly owned with privately held The TPL Group. The MMP™ Portfolio includes seven U.S. patents as well as their European and Japanese counterparts. It is widely recognized that the MMP™ Portfolio protects fundamental technology used in microprocessors, microcontrollers, digital signal processors (DSPs), embedded processors and system-on-chip (SoC) devices.
- Patriot currently holds a 50% joint ownership in Phoenix Digital Solutions, LLC, the entity that records the license revenues for the MMP Portfolio.
- Patriot owns 46% of Holocom Networks, a company making security enclosures for secure networking applications, primarily to military, government agency and defense contractors.
- The Company acquired Crossflo Systems, Inc., a San Diego, California private software and services company noted for its innovative data-sharing solutions on September 1, 2008. Crossflo is building a base of clients in justice and public safety, and homeland security that have a critical need for secure, selective, scalable and nondisruptive data-sharing.
Patriot Data Solutions Group, Inc. (“PDSG”), a wholly owned subsidiary of Patriot Scientific Corporation, provides products and solutions that enable mission-critical applications to significantly accelerate the time to value and reduce total cost of ownership for their data sharing initiatives.
Patriot Data Solutions Group
11260 El Camino Real
San Diego, CA 92130
Tel: 858.724.2216 888.583.0333
Patriot Data Solutions Group, Inc. (PDSG) is a wholly owned subsidiary of Patriot Scientific Corporation (PTSC). PDSG offers proven, standards based data-sharing technology and services for Public Safety, Justice and Healthcare. With its uniquely non-disruptive, open-standards approach to data sharing, PDSG’s record of success includes some of the nation’s earliest and most advanced statewide data-sharing initiatives.