Chinese Conglomerate Licenses TechnoConcepts' True Software Radio Technology
Thousand Oaks, CA -- TechnoConcepts, a designer, developer, and provider of proprietary wireless communications solutions, announced today it has entered into the first license agreement for its proprietary True Software Radio (TSR) technology. The agreement is with China Electronics Corporation (CEC), a $5 billion conglomerate under the direct supervision of the central government of China, with 16 wholly-funded subsidiaries, 30 shareholding companies, two overseas operations, and six publicly listed companies. The agreement was executed by a division general manager of CEC who also serves as a director for the Ministry of Information Industry. This license enables CEC to incorporate TSR technology as an integral component in the development of next generation commercial and governmental wireless applications.
The license agreement is subject to approval of the United States Department of Export License Control and to regulations of the People's Republic of China (PRC) Government, whose approvals are anticipated to be received. The license agreement calls for TechnoConcepts to receive a technology access fee, payable as project milestones are achieved, as well as a future royalty stream based on the production of products which incorporate the TSR technology. TechnoConcepts expects to realize revenue from the license agreement in 2005, with more significant revenue anticipated beginning in 2006.
The first phase of this agreement calls for the preparation and development of specifications for TechnoConcepts' technology to fit the requirements of CEC's projects, which will focus on numerous wireless communications products for government and commercial applications.
Commenting on the announcement, Antonio Turgeon, chairman of TechnoConcepts, stated, "This agreement is a landmark event for TechnoConcepts being the first of numerous technology licensing agreements we expect to secure. China Electronics Corporation is an ideal business partner as it possesses broad based capabilities, including the capability of designing, producing and testing semi-conductors. CEC's companies accounted for an annual output of 1.68 billion integrated circuits or 13.5% of the total output for the PRC. CEC's companies are also leading providers of software and system integration services and hold a strong presence in the PRC's telecommunications industry, with one of its subsidiaries having sold more than 11 million mobile phones of which 8.5 million were sold in the PRC, accounting for about 9.7% of the total number of mobile phones sold in the PRC in 2003."
Source: TechnoConcepts