Industry News

SAMSUNG and Microsoft Announce Broad Patent Agreement

Representatives Samsung Electronics Co., Ltd. and Microsoft Corp. announced April 18 that the companies entered into a broad patent cross licensing agreement. Samsung Electronics is the largest publisher of United States patents in 2006 and owner of one of the largest U.S. patent portfolios. The companies expect the agreement to accelerate their respective product development efforts. Microsoft has actively sought patent agreements with a range of companies in an attempt to build bridges with an array of consumer electronics, telecommunications, computer hardware and Linux/Unix platform providers.

Through the agreement, Samsung will obtain access to Microsoft patents that may be practiced in a range of Samsung's existing and future product lines, such as computer products, set-top-boxes, digital media players, camcorders, televisions, printers, and home appliances. In these product lines, Samsung and its distributors and customers may utilize Microsoft's patents in Samsung's products with proprietary software and Samsung will also obtain coverage from Microsoft for its customers' use of certain Linux-based products.

Likewise, Microsoft will gain access to Samsung's large patent portfolio relating to digital media and computer related inventions, for its existing and future products. The specific financial terms of the agreement are confidential, but both parties will receive monetary payments compensating them for the value of their portfolios.

The announcement is the latest in a growing set of agreements that help build bridges across a range of computer hardware, software and telecommunication products from the world's leading companies. In the past twelve months, Microsoft has announced similar agreements with companies such as Novell, NEC, Fuji-Xerox, Seiko-Epson and Nortel.

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Government-Lockheed Martin Team Signs Contract with Army Corps of Engineers

In a brief ceremony on April 19, the U.S. Army Corps of Engineers issued a Letter of Obligation to the Government's Most Efficient Organization (MEO) to provide Information Management and Information Technology (IM/IT) services. Lockheed Martin will partner with the MEO to provide contractual services to meet the agency's IM/IT requirements.

Major General Ronald L. Johnson, USACE Deputy Commander, signed the Letter of Obligation with the MEO, initiating the phase-in and transition to the new IM/IT organization. The agreement is valued at approximately $447 million over the next five years. The MEO, supported by Lockheed Martin (NYSE:LMT), will provide Direct IM/IT services and contractor support at 55 major locations throughout the Continental United States and the Pacific Ocean Division Office, including the Alaska and Honolulu Districts.

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Raytheon Finalizes $184 Million Radar Equipment Contract

Raytheon Company has finalized a $184 million U.S. Navy contract for radar equipment for the Royal Australian Navy's Air Warfare Destroyer (AWD) and the Spanish Navy's F-105 Frigate.

Under the Foreign Military Sales contract, Raytheon IDS will manufacture, integrate and test AN/SPY-1 D(V) system transmitters and MK99 Fire Control Systems for the AWD and F-105 programs. The so-called "definitized" contract reflects the fully negotiated firm fixed price and includes an increase in funding over the original $72 million contract awarded June 2006.

IDS' AN/SPY-1 radar transmitters and MK99 Fire Control Systems have been in continuous production for 28 years as part of the U.S. Navy's Aegis shipbuilding program. SPY-1 and the MK99 are currently onboard the U.S. Navy's fleet of cruisers and destroyers, Japanese Kongo-class destroyers, and Spanish F-100-class frigates.

Work will be performed at IDS' Surveillance and Sensors Center in Sudbury, Mass., the Integrated Air Defense Center in Andover, Mass., and the Maritime Mission Center in Portsmouth, R.I.

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EDS Selected by GSA for $66 Million HSPD-12 Identity Management Services Contract for Federal Agencies

Representatives of EDS announced it has been selected by the U.S. General Services Administration to provide identity management services to federal government civilian agencies. These services will allow agencies to comply with Homeland Security Presidential Directive 12 (HSPD-12), which calls for a mandatory government-wide standard for a secure common form of identification for all federal government employees and contractors.

The single award GSA Federal Supply Schedule task order is worth $66 million and will run through September 2011 if all options are exercised.

HSPD-12 requires federal agencies to use a standard process to establish and manage an individual's identity and then issue that individual an interoperable smart card that can be used for both physical and logical access to federal government facilities and information systems. This policy is intended to enhance security, increase efficiency, reduce identity fraud and protect personal privacy.

Under this contract, the EDS team will support GSA in issuing identity credentials to approximately 420,000 employees at 42 federal civilian agencies. EDS will provide a shared service solution for end-to-end managed services for the following core HSPD -12 system components:

• Enrollment – capturing a federal employee's identity, fingerprint and digital facial images and storing them in the EDS identity management system.
• System infrastructure – the identity management and card management systems.
• Card production and issuance – processing credential requests, producing Personal Identity Verification cards and issuing them to applicants.
• Card activation – verifying applicants' identities using biometric scans and then "personalizing" cards with the applicants' PIN numbers and other information.

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3M to Acquire Innovative Paper Technologies LLC and Powell LLC

Representatives of 3M announced that the company has entered into a definitive agreement to acquire the business of Innovative Paper Technologies LLC, a manufacturer of inorganic-based technical papers, boards and laminates for a wide variety of high temperature applications; and Powell LLC, a supplier of non-woven polyester mats for the electrical industry. Terms of the transactions were not disclosed.

The acquisition allows 3M to enter into the adjacent market of flexible insulation materials, which are used for electrical insulation and thermal transfer applications, serving key customer segments such as motor manufacturers, transformer manufacturers, appliance original equipment manufacturers (OEMs) and wire and cable manufacturers.

IPT and Powell employ about 90 people at its operations in Tilton, N.H. and Haverhill, Mass. The transaction is expected to close in May, subject to customary closing conditions.

The 3M Electrical Markets Division, based in Austin, Texas, designs, manufactures and markets products for electrical construction, industrial maintenance, utility and industrial power businesses, and electrical/electronic devices produced by original equipment manufacturers.