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Microsoft Corp. Licenses Burst.com
Patents & Settles Suit
$60 Million Non-Exclusive
License Sets Stage For Aggressive Patent Enforcement
Santa Rosa, Calif., (March 11,
2005) – Burst.com, Inc. (OTC: BRST), and Microsoft Corporation today announced that Microsoft has taken a non-exclusive license to
Burst’s international patent portfolio, for a one-time license fee of $60
million dollars. The license is for use only by Microsoft in its own
product and does not include sub-licensing rights. The patent license also
settles the outstanding litigation between both companies.
Burst stated that while the patent
license resolves the litigation with Microsoft, it also validates the
Burst patents as pioneering intellectual property in the field of media
delivery.
Richard Lang, Burst CEO, said that Burst intends to use
the net proceeds from the license to Microsoft, after attorneys fees, in
primarily 3 areas:
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To payoff, or reserve for, its
current and long term liabilities (approximately $2.8 million), which
includes promissory notes (secured and unsecured), outstanding payables,
debts to former employees of the company and all accrued salaries and
bonuses.
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To Reserve a sufficient amount of
operating capital to launch a vigorous ongoing enforcement of its patent
rights against all infringing parties, as well as pursuing software
licensing and other avenues available to the Company to maximize the
return to Burst shareholders.
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Distribute a substantial portion
of its funds through a cash dividend to its shareholders of record. The
dividend per share and date of record will be announced at a subsequent
date.
Burst said that when it is
available, it will publish the settlement agreement and Microsoft patent
license on its website,
www.burst.com,
except for any confidentiality provisions which may exist.
“We
spent over a decade developing and patenting burst technology in
anticipation of the markets that are now emerging. With this action behind
us, the company will now focus on its other important opportunities. We
would like to thank the many supporters and contributors who helped us
make it to this exciting juncture.” said Lang.
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This Press Release contains
forward-looking statements similar to those covered by the safe harbor
provisions under the Private Securities Litigation Reform Act of 1995. We
believe that the expectations expressed herein, regarding the basis and
effect of the new license of our technology with Microsoft, our use of the
funds from this non-exclusive license, our intent to further enforce our
patents against other companies and our intent to develop and sustain new
operations are based on reasonable assumptions. However, these
forward-looking statements are subject to numerous uncertainties and risks
and actual results and developments could differ materially from these
expectations. Factors which could affect our operations and prospects
include the costs and uncertainties of pursuing complicated litigation,
the effect our license with Microsoft will have on other companies
utilizing our technology and in our market and our ability to pursue new
or additional operating strategies. We are not responsible for updating
any such forward-looking statements.
About Burst
Founded in 1988,
burst.com
has pioneered the development of Faster-Than-Real-Time™ video and audio
delivery. burst.com has built an international patent
portfolio covering bursting, video delivery scheduling and Rapid Casting
(TM).
Microsoft is a registered trademark of Microsoft Corp. in the United
States and/or other countries. Burst.com is a registered trademark of
Burst.com Inc. in the United States and/or other countries.
The
names of actual companies, products and technologies mentioned herein may
be the trademarks of their respective owners.
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