Intel Strikes $10M MPU Patent Licensing Agreement

Online staff -- 11/3/2005

Intel Corp. struck a $10 million licensing agreement with San Diego, Calif.-based Patriot Scientific Corp. during the IP provider’s Q1 2006, ended August 31, that provided the chip giant with access to Patriot’s suite of microprocessor patents, the companies reported today.

The patents represent the fundamental core technology behind virtually every microprocessor manufactured since 1995, according to Patriot.

In February, Patriot licensed this same technology to AMD.

Patriot credits the licensing agreements with Intel and AMD for its most profitable quarter ever. For its fiscal Q1 2006, Patriot generated more than $10 million dollars in revenue, and closed the quarter with a net income of $4.44 million dollars.

“We believe these agreements represent continued legal and marketplace validation of Patriot’s position that our patented intellectual property has been - and is being - infringed upon by major microprocessor manufacturers, as well as by their OEM clients,” explained Patriot chairman, CEO and president David Pohl, in a statement.

“Based on current projections, our licensing revenue in Q1 should provide us with the full level of anticipated operating capital needed to support our operations during all of FY 2006,” he added.

Also during the quarter, Patriot entered into a series of agreements with The TPL Group, forming a joint venture to facilitate entering into revenue-producing licenses for use of the combined portfolio of Patriot Scientific and TPL patented technology by microprocessor manufacturers and OEM users throughout the world.

Patriot said its patented IP is used in a wide variety of end-user products including PCs, servers, workstations, home theater systems, digital TVs, video games, DVD recorders/players, mobile handsets and automotive electronics.

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