PowerDsine grants Tyco Electronics license on PoE technology

May 10, 2006 - The company also says the PoE market is shifting from midspan to endspan.

May 10th, 2006

PowerDsine (www.powerdsine.com) recently announced that it has granted Tyco Electronics (www.tycoelectronics.com) a license to use its patent number in connection with the manufacture and sale of midspan Power over Ethernet (PoE) products.

"We are very pleased that Tyco Electronics has agreed to take a license," said Simon Kahn, PowerDsine's director of intellectual property. "This agreement is a continuation of PowerDsine's intellectual property strategy of providing licenses to companies that want to take an active role in the Power over Ethernet market."

The company's patent addresses an Ethernet local area network in which power-enabled elements are detected so that current-limited power can be distributed safely via spare pairs of the Ethernet cabling infrastructure to those elements without affecting legacy devices. The patent PowerDsine states, covers PoE midspan products that connect to an Ethernet switch in order to PoE-enable an enterprise network.

PowerDsine also states it has been granted similar patents in China, Taiwan, Singapore, Australia, New Zealand, and South Africa; it has patent applications covering this technology in five additional countries.

Igal Rotem, PowerDsine's chief executive officer, stated in the company's most recent earnings report that the PoE market is in the midst of morphing from one in which midspan devices dominate to one in which integrated or endspan devices dominate. In that statement on April 26, he referenced "the continued shift from PoE midspans to integrated products. This shift is changing the dynamic of our business.

"We expect midspans to continue to play an important role in our business and we remain committed to our OEM and channel customers," he stated. The company reorganized its PoE midspan business unit in the first quarter of this year, implementing cost-cutting measures it expects will lead to approximately $4.5 million in savings annually.

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