SCIENCE/TECHNOLOGY : Archive Corp. Grants Patent Royalty License to Japan Competitor
Archive Corp., a maker of computer backup products in Costa Mesa, said Monday that it has granted a patent royalty license to competitor Sankyo Seiki.
The agreement was for Archive’s electronic and mechanical patents for DC 600-type cartridge tape drives. At the same time, Sankyo cross-licensed its tape-drive technology patents to Archive patents. Details of the license agreements were not disclosed.
Tag Merrick, vice president and general counsel for Archive, said its license to Sankyo also includes patents obtained by Archive through its acquisition of Cipher Data Products of San Diego earlier this year.
Archive began asking competitors in August to review whether they must pay the company license fees related to patent rights acquired with its purchase in April of Cipher.
Archive has about 50% of the $522-million market for data-cartridge tape drives, which back up the data storage in computers. It is followed by Wangtek, Tandberg Data, CMS Enhancements in Santa Ana, and Sankyo Seiki, according to Freeman Associates in Santa Barbara.
Archive said last week that its net income for the fiscal year ended Sept. 28 will be between $11.3 million and $11.9 million, compared to $15.3 million a year earlier. Revenue is expected to be $295 million, up 63% from $181.4 million a year earlier.
