Concurrent Computer, often cited by analysts as a takeover target, and C-Cor, which is actually in the process of being taken over (by Arris), have agreed to a provision-laden patent cross-licensing deal that clarifies the complicated ownership of a pair of patents originally assigned to Oracle.
The agreement allows any acquirer of Concurrent or its video streaming business – and a subsequent acquirer – to be covered under the patent portfolio previously licensed to Concurrent by Alcatel, so long as the acquirer has not been identified as an Alcatel license target. All that according to C-Cor.
“We are pleased to have this agreement completed,” stated Gary Trimm, president and CEO of Concurrent.
“This news should reassure the investment community and our customers that any Concurrent products sold by us or an acquiring company will be free from any and all patent claims based on the licensed patents.”
In a companion maneuver, C-Cor said it paid Thirdspace Living (in the process of becoming defunct, its assets sold to Alcatel – which is how Alcatel enters the picture) $3.2 million, in exchange for Thirdspace dropping claims to any proceeds C-Cor would receive should it prevail in its patent suit against SeaChange International. Thirdspace, which not coincidentally is in hock to Concurrent, used the money it got from C-Cor to pay off its debt to Concurrent. Concurrent then paid C-Cor $1.7 million in patent licensing fees.
The portfolio licensed to Concurrent by C-Cor includes two U.S. patents and all divisionals, continuations and foreign counterparts of those patents. Oracle developed the original portfolio, then subsequently sold it to nCube (subsequently purchased by C-Cor) and also to Thirdspace. Concurrent obtained a license to the portfolio as part of its 2002 investment in Thirdspace. The license was reissued by Alcatel when it purchased the assets of Thirdspace in May 2003.