SAMSys scores first patent as U.K. technology firm takes equity stake

SAMSys Technologies Inc., a radio frequency identification (RFID) system developer, has scored a couple of major wins recently that should greatly increase awareness of the Toronto-based company in global markets. In late February, SAMSys received its first patent covering proprietary RFID tag evaluation technology, and it landed a $9-million infusion of cash from BTG International Ltd. in exchange for a 23 per cent equity stake in the firm. SAMSys chair/CEO Cliff Horwitz says these two developments provide the company with a major momentum boost going forward, especially given the economic climate of the past several months. BTG’s investment and the selection of SAMSys by International Paper last year as its principal RFID reader supplier clearly demonstrate that the company is on the right track. "Certainly the economic environment has not been particularly friendly to either microcap companies or technology-based companies in general," Horwitz explains. "I think it is certainly a great boost and that it clearly establishes the reaffirmation and confirmation of the integrity and efficacy of the strategy we’ve employed. "I think it speaks volumes of our concept of technology agnosticism within RFID in order to break this mould of proprietary, mutually exclusive technologies being deployed whether they are the right or the wrong technology for any given application," he tells Report on Wireless. "I think this is the kind of credibility boost I would hope will open the doors to us being the natural choice of those companies which are looking for a pragmatic approach to the installation and deployment of RFID." Landing the patent for its RFID evaluation technology was key to SAMSys, as it fills a major void within the entire RFID industry, Horwitz says. To enable the effective deployment of any RFID system, installers need an evaluation kit to make sure that the tags are functioning properly, given all the different tags on the market and the uniqueness of each system deployment. "The installation of an RFID reader is not a generic event and it is not the case of bolting a black box onto a wall," Horwitz explains. "The challenge is invariably to get power to the tag and there has to be some device developed to be able to identify the relative performance of a variety of different tag products in any given installation. So we see this is an enormously important piece of the puzzle because it is part and parcel of the practical tools necessary for effective installation or deployment of RFID." Horwitz anticipates receiving more patents in the future, which should "round out our portfolio to the degree that we have effectively reinforced our competitive advantage." New RFID developments on the horizon As part of the agreement with U.K.-based BTG, the two companies will form a joint venture to address the UHF (868 MHz to 928 MHz, depending on country) RFID market. Horwitz explains that each of the frequencies already allocated for RFID systems is better suited for different applications, likening each spectrum range to a different golf club. "Each one of those is effectively a separate weapon or tool within the same kit," he adds. Currently, the UHF portion of the RFID market is under-developed and the joint venture will seek to come up with better systems and a broader array of products in that frequency range. "It is our intention to specifically carve out that one particular area which is under-catered at the moment and we believe that there are a number of opportunities in that particular sector of the market (to which) we can bring some real exciting developments."

SAMSys scores first patent as U.K. technology firm takes equity stake

News | 03/18/2002 5:00 am EST

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