MOSAID acquires 1,200 Nokia standards-essential wireless patents

MOSAID Technologies announced that it has acquired Core
Wireless Licensing a Luxembourg company that holds a portfolio of 400 patent
families, consisting of approximately 2,000 wireless patents and patent
applications originally filed by Nokia. Core Wireless will operate as a wholly
owned subsidiary of MOSAID.

The patents and patent applications cover technologies
used in a wide range of mobile communications devices and services. One hundred
of the patent families, consisting of approximately 1,200 patents and
applications, have been declared essential to second, third and
fourth-generation communications standards, including GSM (Global Systems for
Mobile communications), UMTS / WCDMA (Universal Mobile Telecommunications
Service / Wide-Band Code Division Multiple Access) and LTE (Long Term
Evolution). The rest of the portfolio consists of approximately 800 wireless
implementation patents.

“This is a transformative event for MOSAID which
will drive significant revenue growth and shareholder value over the next
decade, and will create exciting new opportunities for MOSAID as one of the
world’s premier licensing organizations,” said John Lindgren, president
and CEO, MOSAID Technologies.

Based on its extensive experience in the industry, MOSAID
believes that revenues from licensing, enforcing and monetizing this wireless
portfolio will surpass the company’s total revenues since its formation in

has been working towards this transaction since March 2011. Under the terms of
the governing agreements:

MOSAID will fund its acquisition of the portfolio through
royalties from future licensing and enforcement revenues.

MOSAID will record all future royalties received from
monetizing the patents as revenue. Core Wireless will retain approximately
one-third of gross royalties from future licensing and enforcement of the
patents and will bear all of the costs associated with their administration,
licensing, enforcement and monetization.

The acquired portfolio is generally not transferable by
Core Wireless. In the event of a change of control of MOSAID, the contract
parties have the right, at their discretion, to require MOSAID to transfer the
patents to a third party for nominal consideration, prior to the consummation
of any such change of control. The recent commencement of an unsolicited offer
for MOSAID constitutes a change of control for the purposes of this agreement.

Core Wireless’s ongoing ownership of the portfolio is
subject to minimum future royalty milestones.

By Team
[email protected]


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