Patriot reveals two-tier royalties structure

Peter Clarke

EE Times

(02/23/2006 12:55 PM EST)

LONDON — Semiconductor makers, like Intel Corp. and Advanced Micro Devices Inc., are not being required to pay royalties to license the Moore Microprocessor Patent (MMP) portfolio, which is administered by Alliacense on behalf of Patriot Scientific Corp. and TPL Group, the co-owners of the portfolio.

In an announcement that Casio Computer Co. Ltd. had joined Hewlett-Packard as the second system manufacturer to purchase a license to use intellectual property protected by the MMP portfolio, Patriot (San Diego, Calif.) revealed that semiconductor makers are being offered royalty-free licenses.

The company also announced that it had received disbursements of $24 million so far on licensing deals with AMD, Intel and HP. One interpretation is that AMD and Intel have made single up-front licensing fees and that HP, as a systems company, and Casio have agreed to make per-unit royalty payments.

“The intellectual property represented by the MMP portfolio, and protected around the world, encompasses building blocks for virtually all digital products being designed and shipped today,`` said Mac Leckrone, president of Alliacense, in a statement issued by Patriot. Alliacense is a subsidiary company of TPL Group set up to manage the MMP portfolio.

Leckrone emphasized that the MMP portfolio covers techniques used in processors in most devices ranging from TV remote controls up to automobiles. “System-level coverage is essential to maintaining product design freedom and avoiding supply-chain disruptions,” Leckrone said. Alliacense offers simple, royalty-free licenses to all semiconductor sector operations, worldwide, Patriot added.

Leckrone said that the MMP portfolio licensing program provides discounts for the first companies to sign licenses in various market sectors. “By design, our licensing structure enables nimble and forward-thinking system manufacturers to disadvantage their competitors.”