Innovision has signed a licensing deal with a “global leading semiconductor corporation” that will see the semiconductor supplier using Innovision’s NFC IP in its “range of chips targeted at mobile handsets and other consumer electronic products incorporating connectivity solutions.”
“There will be licence and development services revenue in excess of $2m in this financial year with further development, licence and royalty flows anticipated in the following years,” says Innovision. “The board of Innovision R&T expects this contract to generate direct revenues in excess of $10m over several years from a combination of licence, development and royalty income.”
“Winning such a major licence and royalty deal for our NFC IP with such a leading semiconductor corporation at the start of our new fiscal year is tremendously encouraging,” says David Wollen, Innovision’s CEO. “There are signs of great activity in the NFC world and this win should secure our IP into a significant proportion of the NFC handsets in years to come.”
“In addition to a strong royalty stream based on expected handset shipments it also provides a foundation on which to build our tags and peripherals business for applications that will interact with the phones using NFC,” he added.
Innovision, a board member of the NFC Forum, specialises in developing RF and NFC semiconductor solutions which it then licenses to silicon suppliers for incorporation into their own products.
During the first half of 2009, Innovision signed three licensing deals for its Gem IP System on Chip (SoC) connectivity solutions for NFC handsets. The first two were with manufacturers of mobile device chipsets who are working with Innovision to incorporate the company’s NFC expertise into their product lines. The third deal saw Innovision signing a joint marketing and licensing agreement with NXP, designed to enable the two companies to provide a combined offering to potential customers looking to integrate NFC into their phones.