ARM is a leading participant in a consortium of major technology companies to acquire rights to MIPS’ portfolio of 580 patents.
CAMBRIDGE UK -- 6 November 2012 -- ARM [(LSE: ARM); (NASDAQ: ARMH)] today announced that it is a leading member of Bridge Crossing LLC, a consortium of major technology companies affiliated with Allied Security Trust, which has entered into an agreement with MIPS to obtain rights to its patent portfolio. The MIPS patent portfolio includes 580 patents and patent applications covering microprocessor design, system-on-chip design and other related technology fields. The consortium will pay $350 million in cash to acquire rights to the portfolio, of which ARM will contribute $167.5 million.
The transaction will, upon completion, support continued innovation in system-on-chip design, whilst removing any potential litigation risk presented by the MIPS patent portfolio with respect to the consortium members. The consortium will make licenses to the patent portfolio available to companies not within the consortium.
"ARM is a leading participant in this consortium which presents an opportunity for companies to neutralize any potential infringement risk from these patents in the further development of advanced embedded technology," said Warren East, CEO, ARM. "Litigation is expensive and time-consuming and, in this case, a collective approach with other major industry players was the best way to remove that risk."
This transaction, which is subject to MIPS shareholder approval, and customary closing conditions, is expected to close in the first quarter of 2013. ARM’s contribution of $167.5 million will be funded out of existing cash reserves.
About ARM
ARM designs the technology that is at the heart of advanced digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices. ARM’s comprehensive product offering includes RISC microprocessors, graphics processors, video engines, enabling software, cell libraries, embedded memories, high-speed connectivity products, peripherals and development tools. Combined with comprehensive design services, training, support and maintenance, and the company’s broad partner community, they provide a total system solution that offers a fast, reliable path to market for leading electronics companies. Find out more about ARM from our website:
http://www.arm.com.
Contacts:
Sarah West/Aideen Lee
Brunswick
Tel.: +44 (0)207 404 5959
Ellie Springett/Ian Thornton
ARM
Tel.: +44 (0)1223 400400
