The new license with Fujitsu runs until the end of 2005 and, like the expired license, excludes TI's Kilby patent. Annual payments to TI under the new license will be substantially greater than the annual payments under the prior license. Payments from Fujitsu do not represent a significant portion of TI's total royalty revenue. Additionally, several licenses will expire at the end of the first quarter of 1996. The expiration of these licenses will have no effect on first quarter 1996 royalty revenue.
Negotiations continue for renewal of expired and expiring licenses.
Also, the company will continue negotiations with computer manufacturers in an effort to reach additional computer systems licenses. However, these negotiations by their nature are not predictable as to outcome or timing. As previously announced, following extensive negotiations with Samsung and the expiration of its license, TI filed suit against Samsung and its two U.S. subsidiaries, charging them with patent infringement. In addition to unspecified monetary damages, TI is asking the court to issue a permanent injunction barring Samsung from using TI's patents. The litigation was filed in the Federal District Court for the Eastern District of Texas, Marshall Division, alleging violation of several patents involved in the manufacture of semiconductor devices, including DRAMs.