Cryptography Research Announces License Agreement with EM Microelectronic for Differential Power Analysis Countermeasures Patents

SAN FRANCISCO, USA — August 31, 2009 — Cryptography Research, Inc. (CRI) today announced an agreement with EM Microelectronic - Marin SA (EM), the semiconductor company of the Swatch Group, regarding the use of CRI’s patents to enhance the security of EM Microelectronic ’s tamper-resistant smart card chips against Differential Power Analysis (DPA) and related attacks.

EM is a leading supplier of flash-based smart card chips in the telecom market. Under the agreement, EM receives the freedom to use CRI's patents as part of its strategy to develop and enhance its security chips used in smart card security applications such as banking and electronic identification. The license also covers software executing on EM’s licensed chips, allowing EM’s customers to develop their own security countermeasures without a separate license from CRI.

“We are pleased to announce this license agreement with EM Microelectronic,” said Carole Coplan, Vice President of Business Development for Tamper Resistance Solutions at CRI. “EM Microelectronic is a growing producer of semiconductors and this agreement is another milestone for both our licensing program and security efforts in the smart card and semiconductor industries.”

DPA is a form of attack that involves monitoring the fluctuating electrical power consumption of a target device and then using advanced statistical methods to derive cryptographic keys and other secrets. Strong countermeasures to DPA help protect smart cards used in applications such as banking, pay television, mass transit, secure ID, and wireless telecommunications.

Cryptography Research discovered DPA and has developed a portfolio of approximately 50 patents covering the fundamental countermeasures to DPA attacks.