Jul 23 2009
Neo Material Technologies (TSX: NEM) (the "Company" or "Neo") announced today that its Magnequench division has effectively completed the extension of its patent compliance program (the "Program") until July 2014. On May 5, 2008, the Company announced that it had reached agreements with an initial group of Program participants. As stated in that announcement, the Company continued discussions with the remaining participants in the Program.
Ten companies, including Samsung Electronics, LG Electronics, and Lite-On IT Corporation, have now joined the initial group of 6 Program participants which included Mitsumi Electric, Alphana Technology (formerly known as the JVC Motor Company) and Kodak among others. These participating companies account for essentially all of the Optical Disc Drive ("ODD") market, as well as large portions of the Office Automation and Hard Disc Drive markets. Prior to the Program's establishment, ODDs had been the largest target market for infringing, non-Magnequench magnetic powders. The agreements, which extend the duration of the Program from December 2009 until July 2014, are intended to protect a significant portion of Magnequench's core business from patent infringement, by broadly and regularly monitoring the market for infringing materials.
In addition to these agreements, the Company is actively working with several companies in North America to implement the Program for products not related to computer or IT applications, such as dynamos, automotive motor/sensor and consumer electronic applications. By proactively cooperating in such markets, the Company is seeking to prevent the introduction and growth of infringing materials into these growing applications.
"We are very pleased with the result of our discussions with the Program's participants. The extension agreements will ensure the continuous and successful safeguarding of our intellectual property and help maintain our fair market share in these dynamic end markets," stated Constantine Karayannopoulos, President and CEO. "Moreover, reaching these agreements gives us the opportunity to expand our R&D efforts, by allocating additional resources to the development of new technologies, applications and markets."