Ovonic Cognitive Computer, Inc. (OCCI) is a Michigan Domestic for Profit Corporation. It has rights to over 300 U.S. and foreign patents presently assigned to Ovonyx Memory Technology, LLC (OMT). The patent rights include non-exclusive, royalty-bearing rights in the field of cognitive computing, as defined in a September 26, 2002 License Agreement between Energy Conversion Devices (ECD) and Ovonyx, Inc. The Energy Conversion Devices Liquidation Trust owns 95% of OCCI, with Micron owning the remaining 5%.
The OCCI patent rights reflect pioneering work of Stan Ovshinsky and his colleagues relating to the development of phase-change materials for use in computing devices. Included in OCCI’s rights are patents that were originally issued to Ovonyx, Inc., which has since been acquired by Micron.
The 2002 License Agreement granted OCCI rights under patents “licensable” by Ovonyx, Inc. These “licensable” patents were defined in the Agreement to include any patents licensable by Ovonyx, whether (1) owned by Ovonyx or (2) licensed to Ovonyx, Inc. under of licensing/development agreements Ovonyx, Inc. entered into with third parties granting Ovonyx the right to further license. OCCI’s non-exclusive license rights under both the Ovonyx-owned (now OMT owned) and any other Ovonyx-licensable patents are limited to computers and computer-like devices having “cognitive computing” (e.g. artificial intelligence) capabilities, as detailed below.
The royalty obligation with respect to the OMT-owned patents (see the listing attached) on OCCI’s sales of cognitive computing-like devices ranges from 2.5% to 3.5%. The royalty obligation with respect to other patents licensable by Ovonyx, Inc. is based on the assumption by OCCI of any royalty and other obligations imposed on Ovonyx by the third-party licensor.
The License Agreement further provides that the current license rights of OCCI do not include any proprietary technology other than rights under licensable patents. Specifically excluded from OCCI’s license rights are right to use know-how and trade secrets of Ovonyx, Inc. or know-how, trade secrets, confidential information, or patents of Ovonyx licensees. In addition, radiation-hardened integrated circuits are outside the scope of the license.
Although OCCI’s non-exclusive licenses are not further sublicensable, OCCI was granted rights to make, as well as have made and otherwise dispose of, “cognitive computing” devices. The rights relating to cognitive computing devices encompass devices with adaptive cognitive behavior applications, including pattern recognition that mimics brain function with behavior and control based on and resulting from that pattern recognition.
The License Agreement contains an exception relating to making (or having made) certain types of memory-only computer components. (The License Agreement defines these as “Memory Devices” and “Discrete Memory.”) When such memory-only components used in cognitive computing devices involve the patented Ovonyx phase-change technology, they must be supplied by other licensees that have been authorized under the licensed patents to do so. This licensing restriction, however, does not apply to memory embedded in integrated circuits that perform computer logic functions (defined in the Agreement as “Embedded Memory”). The License Agreement authorizes OCCI to either make these memory-containing logic ICs for use in cognitive computing devices itself or have them manufactured for it for such uses.