Beaverton, Ore. — January 21, 2014 — Digimarc Corporation (NASDAQ: DMRC) and Intellectual Ventures (IV) have reached a settlement in their arbitration concerning disputes relating to IV's calculation of potential profit sharing payments under Digimarc’s patent license with them. The parties have resolved all matters pending in the arbitration. The terms of the settlement are confidential.
“With this matter behind us, we can refocus resources on maximizing the mutual profitability of monetizing the patents licensed to IV. We and IV have identified numerous interesting licensing opportunities to pursue,” said Bruce Davis, Digimarc’s Chairman and CEO. Davis continued, noting that “Digimarc has a key role to play in the monetization process by proving the value of its inventions in various commercial initiatives.”
“IV and Digimarc have continued to work together to pursue licensing customers for Digimarc’s patent portfolio,” said Ken Lustig, Vice President of Intellectual Ventures. “We have maintained a good business relationship and look forward to Digimarc’s ongoing assistance in our licensing efforts.”
Digimarc has received reports for licensing activity through December 2012. The activities did not result in profit participation and the settlement did not change this outcome. The generation of profits to share is a function of Digimarc’s demonstration of value of the inventions and joint licensing efforts with IV. Digimarc is not yet in a position to project if, when, or how much profit participation it will receive. The next profit participation report is due in March 2014, covering 2013 licensing activities.
Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to "see, hear and understand" the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, visit www.digimarc.com.
With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements and any related inferences regarding the levels or likely success of licensing activity or of portfolio monetization efforts, the possibility that Digimarc may someday be in a position to project if, when, or how much profit participation it will receive, the results of continuing collaboration between the companies, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company's Form 10-K for the year ended December 31, 2012 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
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