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AUO and E-Ink, Hydis Sign Patent Cross-License Agreements (2012.10.12)

Today AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) signed patent cross license agreements with E-Ink Holdings ("E-Ink") and Hydis Technologies Co., Ltd. (“Hydis”), E-Ink's South Korean subsidiary, respectively. The parties have agreed to cross license specified patents owned by each party.

AUO, E-Ink and Hydis have all invested R&D resources in the advanced display technologies and each established strong and comprehensive patent portfolios. To respect each other's intellectual property, the parties have agreed to grant specific patents that each owns. Under the terms of the agreement, which will be effective for ten years, the parties will be able to use the specified proprietary technologies of the other. The patent cross-license agreements primarily involve LCD related technologies, including the wide viewing angle Fringe Field Switching (FFS) technology with applications to smartphones and tablets, which will facilitate technological development of innovative electronic products.

Hydis' FFS technology has wide viewing angle, power-saving, high contrast, and high resolution features. With the signing of the agreements, AUO's strengths in wide viewing angle technology will be further enhanced.

Both AUO and E-Ink believe that the patent cross-license agreements will sharpen their competitive edge in the industry and introduce more chances for technological and business collaborations to pursue business opportunities together and expand market reach.