IBM and 3Com Extend Relationship with Patent Cross-Licensing Agreement

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ARMONK, N.Y. & SANTA CLARA, Calif - 02 Aug 1999: -- IBM and 3Com Corporation today announced a patent cross-licensing agreement. The two companies will license their extensive patent portfolios on networking and communications technologies to enable each company's development teams to bring products to market faster.

"The agreements with 3Com help both companies expand research and development goals," said Dr. James T. Vanderslice, senior vice president and group executive, IBM Technology Group. "The technology advances of IBM's best and brightest researchers are worth a lot to our customers in the communications world, and this highlights our strategy to get IBM innovation into the marketplace as quickly as possible. We believe customers will welcome this agreement to work together for their benefit."

"The joint efforts of the two technology leaders will result in new solutions and support for customers to access networked information in new and creative ways," said Bruce Claflin, president and Chief Operating Officer of 3Com. "By sharing patents, 3Com and IBM have greater freedom to develop exciting new products and compete in new information technology market segments."

IBM and 3Com have enjoyed a successful business and technology development relationship for over seven years, including collaborating on the IBM 8260 Multiprotocol hubs and IBM 8271 Ethernet LAN switches, PC modems and network interface cards, and IBM's custom chip development and manufacture for 3Com CoreBuilder® products. Recently, IBM announced that 3Com would be using the PowerPC 405GP to reduce "system-on-a-chip" design and development time.

Cross-Licensing Agreement for New Development
Under the terms of the cross-licensing agreement, each company will receive a license under all patents that relate to their specific field of interest. IBM's portfolio includes fundamental patents on a wide range of networking technologies including server access, server load balancing, web caching, ATM/Ethernet/Token Ring technologies, network interface cards and network management, policy-based networking and virtual private networks, among others.

3Com's portfolio includes hardware and software patents on handheld connected organizers, network interface cards, analog and digital modem technology, network hubs, routers and switches, broadband networking technology, Voice over IP, and LAN telephony.

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