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3Com sells Infineon the rights to its patents for Ethernet over DSL technology, in exchange for cash and future royalties
January 24, 2003
MUNICH and SANTA CLARA, Calif. -- 3Com Corporation (Nasdaq: COMS) and Infineon Technologies AG (FSE/NYSE: IFX), announced today that they have entered into an agreement that assigns 3Com’s rights to certain patents related to Ethernet over Digital Subscriber Line (DSL) to Infineon. This agreement provides Infineon undivided interest to these patents and thus reinforces Infineon’s leadership position in DSL. In turn, 3Com received an undisclosed fee and will subsequently receive a portion of royalties earned through future licensing of the patents by Infineon. Infineon's Packet-over-VDSL (PoVDSL) and 10BaseS™ chips incorporate the technology protected by these patents. Engineers from Savan, an Israeli start-up acquired by Infineon, were assisted by 3Com engineers when they developed the technology protected by these patents. "The ability to deliver true broadband services such as multi-channel video, interactive gaming, and other IP-based applications over the existing infrastructure in an easy and cost-efficient manner established Ethernet over VDSL as the de-facto standard for Internet service providers and Telcos around the world,” said Noam Alroy, vice president of Infineon’s Wireline Communications Business Group and CEO of Infineon Technologies Savan. “The fact that Infineon shipped over 2 million Ethernet over VDSL chipsets in fiscal year 2002 validates our leadership in this key market. Securing full ownership of the patents will enable Infineon to further extend its position as a supplier of advanced technology solutions to communications equipment providers.” 3Com Corp.Infineon Technologies AG
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