We recently reported the purchase of a significant patent portfolio from Motorola’s subsidiary, Symbol Technologies, Inc. which represents the largest, broadest, and earliest filed laser pico projection and display portfolio outside of Microvision’s. Because the transaction did not close until after our November 1st conference call and we were not able to discuss this transaction then, I wanted to provide some insight into why this transaction is important to Microvision.
We purchased this portfolio because we believe there is a significant market opportunity for applications included in the portfolio such as head-up display, 3D projection, and other pico projection and image capture applications. Combining this portfolio with our already extensive and highly-rated patent assets substantially extends our leadership position in this space. Prior to this acquisition, Microvision’s portfolio has been recognized for its innovation, impact, and breadth by a number of industry organizations (including 3 consecutive years by IEEE and 2 years in a row by the Patent Board). With the addition of Symbol’s patents, we now have over 500 patents, patents pending and licensed patents worldwide.
We believe that the primary reasons Motorola approached us was because they know that we are a leader in pico projection and displays, the patents would be complementary to our portfolio, and that the patents could assist us in bringing the technology to market. We negotiated a purchase price for the portfolio that is conscious of our current cash position and includes one near-term payment in stock and two longer-term payments in cash. As a result Motorola becomes a shareholder of Microvision.
Intellectual property is a key asset and our strategy is to strengthen this asset base around our core technology and related applications through innovation, licensing and acquisition. With the purchase of this portfolio we have executed on our strategy to enhance our already robust portfolio by the addition of the Symbol patents.
You can read our full press release here.