

6.	ACQUIRED TECHNOLOGY:

Acquired technology consists of acquired license rights for patents and know-how obtained from PD-LD, Inc., Motorola and Fujifilm. These intangible assets consist of the following (in thousands):



	December 31,
	2014			2013
PD-LD, Inc.	$	1,481		$	1,481
Motorola	15,909			15,909
Fujifilm	109,462			109,462
	126,852			126,852
Less: Accumulated amortization	(43,838		)	(32,841		)
Acquired technology, net	$	83,014		$	94,011

Amortization expense for all intangible assets was $11.0 million, $11.0 million and $4.9 million for the years ended December 31, 2014, 2013 and 2012, respectively, and is included in patent costs and amortization of acquired technology expense on the consolidated statements of income.

Motorola Patent Acquisition

In 2000, the Company entered into a royalty-bearing license agreement with Motorola whereby Motorola granted the Company perpetual license rights to what are now 74 issued U.S. patents relating to Motorola’s OLED technologies, together with foreign counterparts in various countries. These patents expire in the U.S. between 2014 and 2018.

On March 9, 2011, the Company purchased these patents from Motorola, including all existing and future claims and causes of action for any infringement of the patents, pursuant to a Patent Purchase Agreement. The Patent Purchase Agreement effectively terminated the Company’s license agreement with Motorola, including any obligation to make royalty payments to Motorola. The technology acquired from Motorola is being amortized over a period of 7.5 years.

Fujifilm Patent Acquisition

On July 23, 2012, the Company entered into a Patent Sale Agreement (the Agreement) with Fujifilm. Under the Agreement, Fujifilm sold more than 1,200 OLED-related patents and patent applications in exchange for a cash payment of $105.0 million, and costs of $4.5 million were incurred in connection with the purchase. The Agreement contains customary representations and warranties and covenants, including respective covenants not to sue by both parties thereto. The Agreement permitted the Company to assign all of its rights and obligations under the Agreement to its affiliates, and the Company assigned, prior to the consummation of the transactions contemplated by the Agreement, its rights and obligations to UDC Ireland Limited (UDC Ireland), a wholly-owned subsidiary of the Company formed under the laws of the Republic of Ireland. The transactions contemplated by the Agreement were consummated on July 26, 2012. The Company recorded the $105.0 million plus $4.5 million of costs as acquired technology which is being amortized over a period of 10 years.

Amortization expense related to acquired technology is currently expected to be as follows (in thousands):



Year	Projected Expense
2015	$	10,999
2016	10,999
2017	10,999
2018	10,999
2019	10,999
Thereafter	28,019
	$	83,014