July 2008


AUSTIN, TX, Jul 28, 2008 (MARKET WIRE via COMTEX) — Applied Nanotech Holdings, Inc. announced that the U.S. Court of Appeals for the Fifth Circuit issued its opinion in its litigation with Canon, Inc. The appeals court in part affirmed, and in part reversed, the rulings of the district court. While the appeals court accepted, without deciding, the district court’s decision that SED, Inc. as originally formed did not qualify as a Canon subsidiary, and that Canon had materially breached the contract, it found that termination of the license agreement was not an appropriate remedy. The appeals court also ruled that the restructured SED, Inc., which is 100% owned by Canon, now qualifies as a Canon subsidiary. The appeals court denied Applied Nanotech’s appeal that the district court had improperly excluded certain evidence from the trial. The decision reinstates Canon’s non-exclusive license to substantially all of Applied Nanotech’s field emission patents, excluding certain display applications. The entire ruling can be found at the court’s website at www.ca5.uscourts.gov.

from www.marketwatch.com

Canon is still working on getting an SED TV produced with a panel using their own technology. Hopefully we will see a Canon SED TV display at both CEATEC in Japan starting September 30th and CES2009 in Las Vegas next January.

In my opinion, the pressure on Canon has just increased with the announcement of the imminent (2009) production of FED TVs or field emission displays from FET, a spin-off from Sony. See FED TV link. Their plans include a 60″ consumer model FED TV after beginning with FED monitor shipments for broadcast and medical applications.

Also imminent, hopefully before 2009, is the decision in the Nano-Proprietary vs. Canon licensing dispute. The last court date was supposed to be June 4 with the decision expected within the next few months.

In any case, the next 6 months are very important for the future of SED television. With realistic sized OLED TV on the horizon and the expected competition from Field Emission Technologies, Canon needs to announce SED TV production to remain ahead of the pack.

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