The deal extends the power of Telcordia’s innovations in networking, optical communications, wireless technology and the efficient delivery of broadband and broadband services. By licensing Telcordia’s patents to a broader base of companies worldwide, Intellectual Ventures and Telcordia will help drive new innovation through use of the patented inventions, which will further advance the way the world communicates. At the same time, this alliance will provide a new revenue stream to Telcordia to continue its research initiatives.
Through this deal, Intellectual Ventures acquires rights to license approximately 500 of Telcordia's US patents and corresponding international patents. Intellectual Ventures is also making a longer term commitment to fund inventions from Telcordia's world class Advanced Technology Solutions laboratory, enabling Telcordia to maintain full control and freedom to determine its own R&D direction.
Adam Drobot, CTO and president for advanced technology solutions at Telcordia, said: “The strength of our communications research and development is an industry differentiator for Telcordia, and by collaborating with Intellectual Ventures, our inventions can be combined with the rest of their portfolio to create critical mass for efficient licensing. The deal not only strengthens our financial position, but it also fuels future research and development initiatives.”
“This arrangement with Telcordia, where we both license and commit to future investment in Telcordia’s R&D work, is a first for us,” said Vincent Pluvinage, who leads strategic acquisitions and private equity at Intellectual Ventures. “We plan to expand this type of R&D funding program to other respected research institutions,” added Pluvinage.
Nathan Myhrvold, CEO of Intellectual Ventures, added: “In difficult economic times, long term R&D programs are often the first efforts cut, yet those are the worst times to stifle great minds and their new ideas because that is when the world needs them the most. We need new inventions to stimulate the economy and create new opportunities for growth. Telcordia is taking a leadership role here by extending the use and reach of its impressive patent portfolio, and Intellectual Ventures is positioned to supply the long term capital to allow for this future growth and job creation.”