QPX qpsx limited

QPSX Patent Case- Licensing

  1. fra
    82 Posts.
    QPX announcement this morning below.

    Remember that QPX owns the patent for the SAR technology(relevantly in Europe,Canada and USA) and that technology is embodied in a world standard.The fact it is embodied in a telecommunications standard suggests that it is highly likely that the technology has been used and consequently more likely that the patent has been infringed,leading to an entitlement to royalties.

    Some interesting features:

    First,the discussions they are having with potential licensees have a confidentiality rider attached now.

    Secondly,as the announcement makes plain,US and Canadian patent coverage has also been recently discussed in those same negotiations.

    This suggests to me two things.

    First that QPSX has not simply been given the cold shoulder in the negotiations and that the discussions are serious.these entities are large telecommunication companies and they would have extensive IP advice and if that advice was strong against infringement you would have thought the negotiations with QPSX would be short and sweet"see you in Court" type discussions.

    Secondly it may be that the discussions have extended to USA and Canada coverage because the potential licensees see a benefit in wrapping up not only Europe but all other patent territories,presumably as a means of obtaining a lower royalty rate overall for a bundled licence.

    Once one or two fall that should help create the domino effect.

    HOMEX - Perth

    Leading technology commercialisation company QPSX Ltd (ASX:QPX) today
    announced that the Munich District Court had received evidence from
    its European subsidiary and licensee QPSX Europe GmbH concerning its
    expanding European licensing program. QPSX Europe's German counsel
    Bernhard Frohwitter and the Company's US based licensing adviser
    Robert Bramson, presented evidence to the Court yesterday in the
    course of a detailed and lengthy examination.

    In April, 2001, QPSX Europe filed a DM125 million (A$115 million)
    writ against Siemens and Deutsche Telekom for infringement of QPSX's
    German patent covering its important Segmentation and Reassembly
    ('SAR') technology. The lawsuit is an integral part of a wider
    licensing program launched by QPSX Europe, targeting negotiations
    with leading European manufacturers and users of Asynchronous
    Transfer Mode ("ATM") telecommunications equipment which incorporates
    the SAR technology.

    The District Court will consider further submissions from the parties
    in the coming weeks, before rendering a decision on 26 November 2002
    on the issues considered. That decision is expected to bring all
    interlocutory issues raised by the defendants to a close and enable
    the Court to rule on the appointment of an expert who will advise the
    court in its considerations of the final stage of the proceedings,
    the technical patent infringement issues.

    "While confidentiality obligations obviously prevented the disclosure
    of many details concerning the licensing program", QPSX Europe's
    licensing partner Mr Bramson said, "we were able to demonstrate to
    the Court the nature and extent of the licensing activities and our
    plans to expand the program in future months into new territories".

    QPSX Europe's Managing Director, Graham Griffiths and General
    Manager, Matt Callahan were in Munich yesterday for the hearing and
    are looking forward to the Court's decision in November. Speaking
    from QPSX Europe's Munich office, Mr Callahan also commented that
    there had been an increase in activity for the European licensing
    team surrounding the September 19 Court hearing.

    Recent discussions with potential licensees have also extended to
    patent coverage of the SAR technology in the United States and
    Canada, and as a result, a new subsidiary is likely to be established
    in the near future to facilitate licence negotiations in North

    QPSX invested over $29 million in cell switch technology which paved
    the way for the adoption of its patented SAR technology in the
    International Telecommunications Standard (IEEE 802.6) a first for
    an Australian company. Subsequently, SAR became embedded in the
    broadband Asynchronous Transfer Mode ("ATM") communications protocol.

    The SAR technology is fundamental to broadband telecommunications, as
    it provides a foundation for ensuring quality of service for Internet
    communications. QPSX's intellectual property is utilised in core
    telecom switch infrastructure over which the majority of Internet
    traffic flows.


    QPSX's focus is the profitable commercialisation of a range of
    technologies on a global basis. QPSX works with research institutions
    and companies across Asia Pacific to identify and then capture value
    in such technologies. This value is realised by QPSX and its
    licensees and commercial partners through products that shape the
    future within their global markets.

    Further information: Graham Griffiths

    Tel: 08 9381 9518
    Email: [email protected]
    Website: http://www.qpsx.com

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