Ann: First Akida IP License Agreement, page-9

BrainChip Signs First Akida™ Intellectual Property License Agreement
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• BrainChip to deliver Akida 1.0 neural network intellectual property (IP) for use in
customer’s system-on-chip (SoC) licensed products
• Agreement includes a single-use design license, implementation support, per unit
royalty and ongoing software maintenance services
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Aliso Viejo, Calif. – 23 December 2020 – BrainChip Holdings Ltd (ASX: BRN), a leading provider
of ultra-low power, high-performance AI technology, today announced the signing of an intellectual
property license agreement with Renesas Electronics America Inc., a subsidiary of Japan-based
Renesas Electronics Corp., a tier-one semiconductor manufacturer that specializes in
microcontroller and automotive SoC products.
The unconditional agreement provides for:
• a single-use, royalty-bearing, worldwide IP design license for the rights to use the Akida™
IP in the customer’s SoC products, which continues while the customer continues to use
the Akida IP in its products. The parties agreed to customary termination terms;
• BrainChip to provide implementation support services (at an agreed fee to cover costs)
aimed at facilitating the customer’s adoption and commercialization of the Akida-licensed
product during the first year of the license agreement.
• The agreement provides for various payment terms including the payment of ongoing
royalties based on the volume of units sold, commencing at certain agreed volume
threshold and the net sale price of the customer’s products. The royalties remain in effect
throughout the life of the licensed product.
• Brainchip to provide software maintenance services, which attract a separate fee if the
customer elects to continue to use these services after the first two years of the
agreement.
The Akida neural processor’s game-changing ultra-low power consumption, high performance and
on-chip training enables smart sensor integration by solving power and footprint challenges for a
variety of sensor technologies. The Akida SoC consumes significantly lower power than needed by
alternative AI solutions while maintaining the required performance and accuracy in a fraction of
the physical space.
“This is an exciting and significant milestone in obtaining the Company’s first IP licensing
agreement. Furthermore, this is a market validation of our technology” said Lou DiNardo, CEO of
BrainChip. “Licensing Akida IP also provides us with an opportunity for recurring revenue over the
lifetime of our customer’s SoC product. We are equipped to help additional customers integrate
Akida technology into their products, which benefit from low power and real-time performance, as
well as extend capabilities to provide AI solutions to IoT devices at the edge without the need for
cloud connectivity.”