Mosaid Technologies announced the acquisition of 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, UMTS/WCDMA and LTE. The rest of the portfolio consists of approximately 800 wireless implementation patents. Mosaid believes that revenues from licensing, enforcing and monetizing this wireless portfolio will surpass the company's total revenues since its formation in 1975. Mosaid said it has been working on the transaction since March. Under the terms of the agreement, Mosaid will fund the acquisition through royalties from future licensing and enforcement revenues. Mosaid will record all future royalties received from monetizing the patents as revenue, while Core Wireless will retain approximately one-third of gross royalties from future licensing and enforcement of the patents and 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 takeover of Mosaid, such as the recent bid by Wi-Lan, the contract parties have the right to require Mosaid to transfer the patents to a third party for a nominal consideration, prior to completing any takeover. No financial details of the takeover were released, and Mosaid maintained its guidance for fiscal 2012.
