SRS Licenses to Lucent

Santa Ana-based SRS Labs Inc. has agreed to license its voice technology to Lucent Technologies Inc. to be used in computer chips for digital cellular telephones, the companies said Monday.

In manufacturing its next-generation chip for wireless telephones, Lucent will use SRS’ voice technology that makes callers more understandable in noisy environments and improves the clarity of voices in any environment, the company said. The deal is similar to one that SRS signed with Samsung Electronics last month.

Although the companies would not release terms of the deal, SRS did say that it would receive per-unit royalties based on volume. Since late 1997, Lucent has sold 6 million of its first-generation chips for cell phones.

SRS Chairman and Chief Executive Tom Yuen said the company should see revenue from the Lucent and Samsung deals starting late in the third quarter of this year and that it continues to pursue similar deals with other large cell phone technology suppliers.

The company also has its sights set on using its technology in hearing aids, cordless phones, Internet audio, public address systems and talking toys, Yuen said.