CopyTele Signs Dual License Agreement with AUO for Nano Display and E-Paper

CopyTele declared that it has signed two license agreements with AU Optronics to manufacture and sell the company’s Nano Display and E-Paper technologies. Under the terms of the license agreements, AUO receives an exclusive license for the technology and patents of CopyTele’s E-Paper display. AUO also receives the right to sublicense the CopyTele’s E-Paper display technology to third party clients.

In addition, AUO receives a non-exclusive license for the technology and patents of CopyTele’s Nano Display. AUO also receives the right to sublicense the CopyTele’s Nano Display technology to third party clients. CopyTele receives royalty payments from AUO as per the agreement. CopyTele will receive a total of US $10 million from AUO. Initially, AUO will pay $3 million fee and it will pay the rest upon completion of specific conditions of the agreement.

The company’s E-Paper display technology produces images by combining specially coated particles with a special type of pixel structure and is useful for low power applications and for electronic books. The Nano display technology uses an electron emission system that makes use of nano materials to generate color videos. The technology also combines nano materials with a new variant of low voltage color phosphors to produce color video data. The company’s Nano Display is suitable for compact, hand-held as well as large size applications.