Department of Justice Issues Favorable Review Letter to RFID Consortium

Business Wire, Oct 23, 2008

Department of Justice Concludes That Proposed Arrangement Appears Procompetitive, Likely to Yield Efficiencies, and Encourages Innovation

WILMINGTON, Del. -- The RFID Consortium is pleased that the US Department of Justice has issued a favorable Business Review Letter relating to the Consortium's proposed licensing arrangement. The full text of the letter is available online at www.usdoj.gov/atr/public/busreview/238429.htm.> At the request of the RFID Consortium, the Department of Justice reviewed the proposed patent licensing arrangement by which the Consortium will license patents that are essential to manufacture products in compliance with the UHF Radio Frequency identification (UHF RFID) standards announced by EPCglobal and ISO/IEC. In its analysis, the Department of Justice concluded that the proposed program appears likely to provide an efficient way to license essential technology with a minimum risk of harming producers or stifling innovation.

"Our goal has been to help companies in the RFID industry and the participating patent holders avoid high transaction costs, blocking positions, and costly litigation which might otherwise occur," said Jim O'Hagan, Administrative Committee Member for the RFID Consortium LLC. "We are pleased the Department of Justice found that the Consortium's proposal 'could result in cost savings and greater access to the technology, ultimately benefiting competition and consumers.'"

The favorable Business Review Letter from the Department of Justice is an important milestone, reaffirming the procompetitive nature of this arrangement. The RFID Consortium agrees with the statement issued by Assistant Attorney General Thomas O. Barnett that "The proposed patent-licensing arrangement has the potential to speed up the commercialization of UHF RFID technology, to the benefit of competition and consumers, without harming competition or impeding innovation."

"We encourage any company with essential patents to join the Consortium," explained O'Hagan. Under the joint licensing arrangement, all patents essential to the practice of the UHF RFID standards owned by participants in the licensing arrangement will be made available to interested companies via a single license on fair, reasonable, and nondiscriminatory terms.

The Business Review Letter was requested by RFID Consortium counsel William F. Dolan and Geoffrey Oliver of Jones Day (www.jonesday.com). The joint licensing arrangement will be administered by Via Licensing Corporation (www.vialicensing.com). Bell, Boyd & Lloyd LLP (www.bellboyd.com) attorney Christopher A. Bloom is counsel to the RFID Consortium.

For further information regarding the RFID Consortium or for participating in the joint licensing program, contact UHF-RFID@vialicensing.com.

About the RFID Consortium LLC

The RFID Consortium LLC is a consortium of companies that own radio frequency identification (RFID) patents. The goals of the Consortium are to promote rapid adoption of UHF RFID in accordance with international standards by facilitating easier access, by manufacturers and customers alike, to essential UHF RFID patents and to provide patent owners the opportunity to receive fair compensation for those patents, all at a reasonable cost to the end-user. The UHF RFID standards as announced by EPCglobal Inc. and ISO/IEC include the EPCglobal Generation 1 (Class 0, Class 0 and Class 1) and Generation 2 (Class 1), and the ISO/IEC 18000-Part 6c (including Amendment 1) parameters for air interface communications at 860 MHz to 960 MHz for radio frequency identification and the communications and interface protocols and conformance specifications referred to in those documents.

Certain statements in this press release, including the potential acceleration of market acceptance of the RFID standard, the benefits of joint licensing programs in general and the benefits of the proposed UHF RFID patent licensing program in particular, the greater adoption of standards through joint licensing programs, and the benefits of RFID capable products, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties actual results may differ materially from those anticipated. The following important factors could cause actual results to differ materially from those in the forward-looking statements: risks associated with licensing industry standards technologies; market acceptance of RFID devices; rapid changes in RFID technologies; risks associated with the development of markets for RFID products; and other risks detailed in Securities and Exchange Commission filings and reports of the companies listed in this release. Any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise is hereby disclaimed.