CopyTele, Inc., a developer, producer, and marketer of thin, flat, low-voltage phosphor displays and multi-functional encryption products, announced that the Indian Government has approved the license agreement between CopyTele and Videocon Industries Limited, a 3.5 billion dollar U.S. flagship company of the Videocon Group, under which Videocon will manufacture and market products, including TVs, utilizing CopyTele’s display technology.
The approval of the Indian Government was the sole condition to effectiveness of the license agreement. CopyTele will receive a license fee of $11 million from Videocon, which is payable in installments over a 27-month period, and a royalty based on display sales by Videocon. The first installment of $2 million is payable within 15 days.
Videocon Group is one of India’s leading business houses, and is a fully integrated consumer electronics and home appliance enterprise with backward integration in Plasma Panel, CRT Glass, color picture tubes and other key components for the consumer electronics, home appliances and components industries. Videocon Group also operates in the Oil and Gas sector through its 25-percent participating interest in Ravva Oil Field, which produces 50,000 barrels of oil per day. The group has the widest sales and service network in India, supporting seventeen locally-based factories.
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