MicroVision announces new license agreement with global technology company
MicroVision announced that it has entered into a license agreement with a leading global technology company to allow the licensee to use MicroVision's display technology to manufacture and sell display-only engines based on MicroVision reference designs. The agreement grants a world wide, exclusive, five-year license to display-only technology. In order to maintain exclusivity, the licensee is required to purchase minimum quantities of MEMS and ASICs from MicroVision. The licensee has agreed to pay MicroVision a license fee of $10 million in 2018. An initial payment of $5 million is scheduled to be paid this quarter and a second payment of $5 million is scheduled to be paid in October. As part of the agreement, MicroVision expects to receive additional payments for non-recurring engineering expenses and services associated with process and product transfer and qualification milestones. The agreement does not include a license to MicroVision technology related to interactive displays, LiDAR and 3D sensing, or near-eye applications, such as augmented or virtual reality, which remain key vertical markets for MicroVision.