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Texas Technology Firm Beats Canon

Austin, Texas-based Nano-Proprietary Inc., a small research and patent licensing firm, scored a major victory Feb. 22 against the world's third-largest patent holder, Tokyo-based Canon Inc. The ruling, which concludes a long-fought contract dispute, may thwart Canon's plans to enter the high-end TV market.

At issue was Nano-Proprietary's patent for surface-conduction electron-emitter display technology (SED), which adds to the brilliance and clarity of flat-panel TV displays. Nano-Proprietary had granted Canon a nonexclusive license to its SED patent, and specifically prohibited any sublicensing of these rights. The agreement did, however, allow Canon to share the technology with its subsidiaries.

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