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Toshiba Reaches Settlement in Lawsuit Seeking Compensation for Employee's Inventions

27 July, 2006


Tokyo - Toshiba Corporation today reached settlement with Dr. Fujio Masuoka, a former Toshiba employee, in a lawsuit in which Dr. Masuoka sought compensation with respect to semiconductor patents under section 35 of the Patent Law of Japan. The terms of the settlement followed recommendations issued by the Tokyo District Court.

This comprehensive settlement covers all employee's inventions made by Dr. Masuoka alone or jointly with other employees (including domestic and foreign patents; patents pending; those inventions which did not reach patent registration; other relevant know-how and all others), during the period of his employment by Toshiba. The settlement provides that: (1) Toshiba pays Dr. Masuoka 87 million yen in full settlement of the lawsuit; and (2) that both parties confirm that there are no longer any outstanding issues or liabilities between them in respect of these employee's inventions.

Toshiba appreciated the substantial degree to which the settlement recommendations by the Tokyo District Court took into consideration Toshiba's policies and arguments in respect of compensation for employee's inventions, and reached the settlement.


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