The Debate Over Patent Reform Begins;
‘Small Tech’ Calls for Caution

Salem, N.H. – April 19, 2007 – AmberWave Systems, a leader in the research, development and licensing of advanced technologies for semiconductor manufacturing, today responded to Congress’s introduction yesterday of The Patent Reform Act of 2007. The bill was introduced by Sen. Patrick Leahy (D-Vt.), chairman of the Senate Judiciary Committee; and Rep. Howard Berman (D-Calif.), chairman of the House Judiciary Committee Courts/Internet and Intellectual Property Subcommittee.

The Patent Reform Act of 2007 is an updated version of a similar bill introduced last year. This year’s debate began during a hearing at the House Small Business Committee last month entitled, “The Impact of Patent Reform on Small Business,” in which AmberWave Systems, along with the Commissioner of Patents from the U.S. Patent and Trademark Office, the National Venture Capital Association, and others, were invited to testify.

Many of the nation’s largest technology businesses are advocating major changes to the U.S. patent laws. But small technology firms such as AmberWave Systems caution against the unintended consequences of certain provisions contained in the bill. AmberWave believes some of the bill’s most controversial changes would make inventions more expensive to protect, make patent rights more uncertain and difficult to defend, and make patent infringement easier and less costly. They are also concerned that the collective impact of the changes would seriously harm upstream, early stage innovation itself; a result that bodes badly for the nation’s overall economic strength.

“The attention to the importance of the patent system in our economy and our future technology companies such as AmberWave Systems is well placed,” said Bryan Lord, vice president of finance & licensing and general counsel for AmberWave Systems. “However, the proposed changes, especially those which have been driven by today’s largest technology companies, simply tilt the playing field in their favor and will hamper our nation’s technology companies of tomorrow.”

AmberWave Systems, together with the Innovation Alliance, advocates instead a concerted focus on improving patent quality. “We think the reform focus is best placed on improving patent quality pre-grant, rather than making patents less certain through post-grant review,” Lord added. “In doing so, Congress would strengthen the patent system without compromising our nation’s economic and technological future.”

About AmberWave Systems
Founded in 1998, AmberWave Systems has become a leader in the research, development and licensing of advanced technologies for semiconductor manufacturing. By funding and guiding university research, AmberWave Systems is bringing new technology developments to fruition through patents and technology licensing. In conjunction with its university research projects, AmberWave Systems conducts its own research, development and limited manufacturing in its semiconductor fabrication facility in Salem, New Hampshire. In addition, AmberWave Systems collaborates with other technology focused companies to further expand and develop its research. For more information about the company, please visit its Web site at http://www.amberwave.com.

About The Innovation Alliance
The Innovation Alliance is a coalition of entrepreneurial companies seeking to enhance America’s innovation environment by improving the quality of patents granted and protecting the integrity of the U.S. patent system. To learn more, visit www.innovationalliance.net.