Master Patent Ownership And License Agreement

EXHIBIT 2.4


EXECUTION COPY


MASTER PATENT OWNERSHIP AND LICENSE AGREEMENT


BETWEEN


ADAPTEC, INC.


AND


ROXIO, INC.


EFFECTIVE AS OF MAY 5, 2001


MASTER PATENT OWNERSHIP AND LICENSE AGREEMENT


TABLE OF CONTENTS
PAGE


ARTICLE 1 DEFINITIONS.................................................................................................1


1.1 ADAPTEC PATENTS.....................................................................................1
1.2 ANCILLARY AGREEMENTS................................................................................1
1.3 ASSIGNED PATENTS....................................................................................2
1.4 CONFIDENTIAL INFORMATION............................................................................2
1.5 DISPUTES............................................................................................2
1.6 FIRST EFFECTIVE FILING DATE.........................................................................2
1.7 INVENTION DISCLOSURE................................................................................2
1.8 MASTER ASSIGNMENT AND ASSUMPTION AGREEMENT..........................................................3
1.9 MASTER CONFIDENTIAL DISCLOSURE AGREEMENT............................................................3
1.10 MASTER SEPARATION AND DISTRIBUTION AGREEMENT........................................................3
1.11 PATENTS.............................................................................................3
1.12 PERSON..............................................................................................3
1.13 RESTRICTED FIELD....................................................................................3
1.14 SEPARATION DATE.....................................................................................3
1.15 SUBSIDIARY..........................................................................................3
1.16 THIRD PARTY.........................................................................................4
1.17 WILD FILE PATENTS...................................................................................4


ARTICLE 2 OWNERSHIP...................................................................................................4


2.1 OWNERSHIP OF PATENTS................................................................................4
2.2 PRIOR GRANTS........................................................................................5
2.3 ASSIGNMENT DISCLAIMER...............................................................................5


ARTICLE 3 PATENT LICENSES.............................................................................................5


3.1 LICENSE TO WILD FILE PATENTS........................................................................5
3.2 TRANSFER OF PRODUCT BY ADAPTEC......................................................................6
3.3 ADAPTEC LICENSE TO ROXIO FOR CURRENT PRODUCTS.......................................................6
3.4 ROXIO LICENSE TO ADAPTEC FOR CURRENT PRODUCTS.......................................................6
3.5 ADAPTEC LICENSE TO ROXIO FOR SUBSEQUENT PRODUCTS....................................................6
3.6 ROXIO LICENSE TO ADAPTEC FOR SUBSEQUENT PRODUCTS....................................................7
3.7 NO LICENSE GRANTED UNDER EXCLUSIVELY LICENSED PATENTS...............................................7
3.8 EXTENSION OF LICENSES TO SUBSIDIARIES...............................................................7
3.9 LICENSE RIGHTS AS TO CERTAIN OTHER PATENTS..........................................................7


ARTICLE 4 ADDITIONAL OBLIGATIONS......................................................................................7


4.1 ADDITIONAL OBLIGATIONS WITH REGARD TO ASSIGNED PATENTS..............................................8
4.2 RECORDATION OF LICENSES.............................................................................8


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TABLE OF CONTENTS
(CONTINUED)
PAGE ARTICLE 5 CONFIDENTIALITY.............................................................................................9


ARTICLE 6 TERM AND TERMINATION........................................................................................9


6.1 TERM OF AGREEMENT...................................................................................9
6.2 VOLUNTARY TERMINATION...............................................................................9
6.3 SURVIVAL............................................................................................9
6.4 NO OTHER TERMINATION...............................................................................10


ARTICLE 7 DISPUTE RESOLUTION.........................................................................................10


7.1 NEGOTIATION........................................................................................10
7.2 PROCEEDINGS........................................................................................10
7.3 CONTINUITY OF SERVICE AND PERFORMANCE..............................................................11


ARTICLE 8 LIMITATION OF LIABILITY....................................................................................11


ARTICLE 9 REPRESENTATIONS AND WARRANTIES.............................................................................11


9.1 FULL POWER AND AUTHORITY...........................................................................11
9.2 EXECUTION DULY AUTHORIZED..........................................................................11


ARTICLE 10 MISCELLANEOUS PROVISIONS..................................................................................12


10.1 DISCLAIMER.........................................................................................12
10.2 NO IMPLIED LICENSES................................................................................12
10.3 INFRINGEMENT SUITS.................................................................................12
10.4 NO OTHER OBLIGATIONS...............................................................................12
10.5 ENTIRE AGREEMENT...................................................................................13
10.6 CONFLICTING AGREEMENTS.............................................................................13
10.7 GOVERNING LAW......................................................................................13
10.8 DESCRIPTIVE HEADINGS...............................................................................13
10.9 NOTICES............................................................................................13
10.10 NONASSIGNABILITY...................................................................................14
10.11 SEVERABILITY.......................................................................................15
10.12 WAIVER OF BREACH...................................................................................15
10.13 AMENDMENT AND EXECUTION............................................................................15


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MASTER PATENT OWNERSHIP AND LICENSE AGREEMENT


This Master Patent Ownership and License Agreement (the "Agreement") is effective as of May 5, 2001, at 12:01 A.M., P.S.T. (the "Effective Date"), between Adaptec, Inc., a Delaware corporation ("Adaptec"), having an office 691 South Milpitas Boulevard, Milpitas, CA 95035, and Roxio, Inc., a Delaware corporation ("Roxio"), having an office at 461 South Milpitas boulevard, Milpitas, Boulevard, Milpitas, CA 95035.


RECITALS


WHEREAS, the Boards of Directors of each of Adaptec and Roxio have determined that it is appropriate and desirable for Adaptec to contribute and transfer to Roxio, and for Roxio to receive and assume, directly or indirectly, substantially all of the assets and liabilities currently associated with the Roxio Business and the stock, investments or similar interests currently held by Adaptec in subsidiaries and other entities that conduct such business (the "Separation");


WHEREAS, Adaptec has caused Roxio to be incorporated in order to effect the Separation and Adaptec currently owns all of the issued and outstanding capital stock of Roxio; and


WHEREAS, the parties intend in this Agreement, including the Exhibits and Schedules hereto, to set forth the principal arrangements between them regarding patent ownership and licenses upon the Separation.


NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the parties hereto agree as follows:


ARTICLE 1


DEFINITIONS


For the purpose of this Agreement the following capitalized terms are defined in this Article 1 and shall have the meaning specified herein:


1.1 ADAPTEC PATENTS. "Adaptec Patents" means all Patents, other than the Assigned Patents and Wild File Patents, having the benefit of a First Effective Filing Date before the Separation Date which are owned or licensable (without payment of royalties for the granting of licenses thereunder) by Adaptec as of the Separation Date.


1.2 ANCILLARY AGREEMENTS. "Ancillary Agreements" has the meaning set forth in the Master Separation and Distribution Agreement.


1.3 ASSIGNED PATENTS. "Assigned Patents" means only those


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(a) Patents, Patent applications and Invention Disclosures that are listed in Schedule A;


(b) Patent applications filed on the foregoing Invention Disclosures described in Section 1.3(a);


(c) continuations, continuations-in-part, divisionals and substitutions of any of the foregoing Patent applications described in Sections 1.3(a) and (b);


(d) Patents which may issue on any of the foregoing Patent applications described in Sections 1.3(a)-(c);


(e) renewals, reissues, reexaminations and extensions of the foregoing Patents described in Sections 1.3(a) and (d); and


(f) foreign Patent applications and Patents that are counterparts of any of the foregoing Patent applications or Patents described in Sections 1.3(a)-(e), including any Patent application or Patent to the extent that it claims priority from any of the foregoing Patent applications or Patents described in Sections 1.3(a)-(e).


1.4 CONFIDENTIAL INFORMATION. "Confidential Information" has the meaning set forth in the Master Confidential Disclosure Agreement.


1.5 DISPUTES. "Disputes" has the meaning set forth in the Master Separation and Distribution Agreement.


1.6 FIRST EFFECTIVE FILING DATE. "First Effective Filing Date" means the earliest effective filing date in the particular country for any Patent or any application for any Patent. By way of example, it is understood that the First Effective Filing Date for a United States Patent is the earlier of (i) the actual filing date of the United States Patent application which issued into such Patent, (ii) the priority date under 35 U.S.C. Section 119 for such Patent, or (iii) the priority date under 35 U.S.C. Section 120 for such Patent.


1.7 INVENTION DISCLOSURE. "Invention Disclosure" means a disclosure of an invention conceived before the Separation Date and which is (i) written for the purpose of allowing legal and business people to determine whether to file a Patent application with respect to such invention and (ii) recorded with a control number in the owning party's records).


1.8 MASTER ASSIGNMENT AND ASSUMPTION AGREEMENT. "Master Assignment and Assumption Agreement" means the Master Assignment and Assumption Agreement between the parties.


1.9 MASTER CONFIDENTIAL DISCLOSURE AGREEMENT. "Master Confidential Disclosure Agreement" means the Master Confidential Disclosure Agreement between the parties.


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1.10 MASTER SEPARATION AND DISTRIBUTION AGREEMENT. "Master Separation and Distribution Agreement" means the Master Separation and Distribution Agreement between the parties.


1.11 PATENTS. "Patents" means patents, utility models, design patents, design registrations, certificates of invention and other governmental grants for the protection of inventions or industrial designs anywhere in the world and all reissues, renewals, re-examinations and extensions of any of the foregoing.


1.12 PERSON. "Person" has the meaning set forth in the Master Separation and Distribution Agreement.


1.13 RESTRICTED FIELD. "Restricted Field" means software products (a) which do not have a hardware component as a material part of the solution sold or licensed to the customer, and (b) which are intended for use primarily on desktop, laptop, palmtop or similar personal computers (as distinguished from use primarily on servers, storage area networks, or other products primarily designed as storage products).


1.14 SEPARATION DATE. "Separation Date" has the meaning set forth in the Master Separation and Distribution Agreement.


1.15 SUBSIDIARY. "Subsidiary" has the meaning set forth in the Master Separation and Distribution Agreement.


1.16 THIRD PARTY. "Third Party" means a Person other than Adaptec and its Subsidiaries and Roxio and its Subsidiaries.


1.17 WILD FILE PATENTS. "Wild File Patents" means only the following held legally or beneficially by Adaptec's wholly owned Subsidiary Wild File, Inc. on the Separation Date, all of which are transferred to Roxio, together with the capital stock of Wild File, Inc., under the General Assignment and Assumption Agreement:


(a) Patents, Patent applications and ...