Pendrell Acquires Foundational Memory Technology Patent Portfolio From Nokia
Pendrell to Continue Next Generation Memory Technology Standards Development
Funded By Licensing Revenue
KIRKLAND, Wash., March 25, 2013
KIRKLAND, Wash., March 25, 2013 /PRNewswire/ -- Pendrell Corporation (NASDAQ:
PCO) announced today that it has acquired from Nokia several fundamental
patent portfolios covering a wide range of foundational memory technologies
for electronic devices. The acquisition consists of 125 patents and patent
applications worldwide, 81 of which have been declared by Nokia to be
essential to applicable standards. These global patent portfolios represent
intellectual property developed over more than 15 years of pioneering research
and development by Nokia in this field, covering secure digital (SD) cards,
embedded flash and universal flash storage capabilities. The global market for
these combined memory technologies is projected to exceed $12 billion in 2013,
and industry analysts project the market for SD cards alone to exceed $21
billion in 2018.
Pendrell has created a new wholly owned subsidiary, Helsinki Memory
Technologies, Oy, ("HMT"), to continue the innovation efforts begun by Nokia
and to enable broader use of these technologies via a global licensing
program. Nokia will receive a license to all of the patents acquired by HMT as
well as to new IP developed by HMT. Proceeds from patent licensing involving
the newly acquired memory portfolios will be partially reinvested to fund the
continuing development efforts.
"Our acquisition of these Nokia patents together with the formation of
Helsinki Memory Technologies uniquely illustrates the deep connection that
strong, transferrable and enforceable IP rights have with promoting investment
in research and development," commented Joseph Siino, chief intellectual
property officer for Pendrell. "As with our other portfolios, the patents we
have acquired from Nokia provide the basis for ongoing innovation, and also
allow us to offer these inventions to IP-respecting companies worldwide on
fair and reasonable terms."
Nokia has been a pioneer in the development and evolution of portable and
embedded memory technologies, which are used in an estimated 8,000 different
consumer electronics devices by more than 400 brands worldwide, including
mobile phones, laptop computers, MP3 players, tablets, digital cameras, video
recorders, printers, set top boxes and others. Furthermore, these portfolios
represent an important portion of all patents that are relevant to the field,
representing inventions currently in use as well as those that are essential
for the next generation of memory standards that are on the horizon.
"We are pleased that our patent sale to Pendrell has enabled the launch of
Helsinki Memory Technologies here in Finland to continue the fundamental
research and development work that Nokia has done over the past fifteen
years," commented Paul Melin, chief intellectual property officer for Nokia.
"We expect that Pendrell's world-class expertise in IP strategy and licensing
will also create a meaningful path to further commercialization of these
technologies, with proceeds enabling continuing investment in R&D by Helsinki
Helsinki Memory Technologies' R&D program will be based in Finland and will be
led by Kimmo Mylly, an award-winning senior technologist and inventor who
previously led Nokia's memory technologies program. Mr. Mylly previously
chaired an industry-wide task group whose work led to the adoption of
standards relating to memory storage for portable devices.
"The opportunity to acquire technologies as foundational and relevant as those
represented by these portfolios is rare. This acquisition represents a unique
opportunity to expand our licensing initiatives, as these patents are
relatively unencumbered, only a handful of IP portfolios cover these
technologies globally, and an established licensing ecosystem is already in
place," said Mario Obeidat, vice president of licensing for Pendrell.
Terms of the transaction and contractual arrangements between the companies
are not being disclosed. The transaction is not expected to materially affect
Pendrell's financial statements in the near term. An informational
presentation on the patents acquired in this transaction is available on the
investor relations page of Pendrell's website, www.pendrell.com.
Pendrell Corporation, through its subsidiaries, is a fully integrated
intellectual property (IP) investment, advisory services and asset management
firm. Pendrell seeks to invest in or acquire companies or assets that
represent unique, foundational intellectual property rights with outstanding
growth potential. Pendrell is headquartered in Kirkland, Washington, with
offices in Berkeley, Los Angeles and Washington, DC. For more information,
SOURCE Pendrell Corporation
Contact: Christopher Doherty, 425-278-7102, email@example.com
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