SED UPDATE: Nano-Proprietary, Inc. Announces Verdict in Canon Litigation

Nano-Proprietary, Inc. (OTC BB: NNPP), today announced that the jury has reached a verdict in its litigation against Canon, Inc. In its verdict, the jury decided that Nano-Proprietary was due no additional damages beyond those already received, which includes the right to keep the $5.5 million that it originally received and termination of the original license agreement.


“While we are disappointed by the jury’s verdict, we need to keep in mind that we already had the most important victory in the case when the Court validated our termination of Canon’s license as a result of their material breach of the contract, said Tom Bijou, Chief Executive officer of Nano-Proprietary, Inc. “We were also pleased that during the trial, Canon confirmed its plans to move forward with its SED TV and continue to believe that the advent of field emission display televisions will be a signal event for Nano-Proprietary. We made a significant gesture to Canon during the course of the trial that we hope will provide a framework of cooperation and negotiation for the future. Nothing about today’s verdict changes the fact that we have significant intellectual property that we believe will have to be licensed by anybody, including Canon, that wishes to sell televisions based on electron emissions in the broad geographical areas of the world where our IP is in effect. The vast majority of our revenue forecast for 2007 has little to do with televisions. Our growth in the materials and sensor business continues to be one of the drivers of our future.”

Souce: Nano-Proprietary Press Release

This doesn't spell the end of SED, but what it does mean is that use of the technology owned by Nano-Proprietary will have to enter renegotiations before the product sees the light of day. From the statement above, it seems that despite the suit, Canon are eager to push forward.