Cambridge Display Technology entered into a patent license agreement with a major Japanese chemical company. The scope of the License encompasses certain light emitting polymer ("LEP") devices.
The Licensee will pay an upfront fee to CDT within sixty days of the effective date of the agreement (which fee has already been received) and will also pay royalties based on its sales revenues for products which incorporate LEP technology. The Licensee will be obligated to pay CDT a minimum royalty after a period of time after commercialisation by the Licensee of products which incorporate LEP technology. The License is terminable by the Licensee on 12 months' notice.