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ACQUIRED TECHNOLOGY | 12 Months Ended
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Dec. 31, 2015
Finite-Lived Intangible Assets, Net [Abstract] |
ACQUIRED TECHNOLOGY |
6. | ACQUIRED TECHNOLOGY:
Acquired technology consists of acquired license rights for patents and know-how obtained from PD-LD, Inc., Motorola and Fujifilm. These intangible assets consist of the following (in thousands):
|  | December 31,
|  | 2015 |  | 2014
PD-LD, Inc. |  | $ | 1,481 |  |  | $ | 1,481 |
Motorola |  | 15,909 |  |  | 15,909 |
Fujifilm |  | 109,462 |  |  | 109,462 |
|  | 126,852 |  |  | 126,852 |
Less: Accumulated amortization |  | (54,837 | ) |  | (43,838 | )
Acquired technology, net |  | $ | 72,015 |  |  | $ | 83,014 |
Amortization expense for all intangible assets was $11.0 million for the years ended December 31, 2015, 2014 and 2013, respectively, and is included in patent costs and amortization of acquired technology expense on the consolidated statements of income. Motorola Patent Acquisition In 2000, the Company entered into a royalty-bearing license agreement with Motorola whereby Motorola granted the Company perpetual license rights to what are now 74 issued U.S. patents relating to Motorola’s OLED technologies, together with foreign counterparts in various countries. These patents expire in the U.S. between 2014 and 2018. On March 9, 2011, the Company purchased these patents from Motorola, including all existing and future claims and causes of action for any infringement of the patents, pursuant to a Patent Purchase Agreement. The Patent Purchase Agreement effectively terminated the Company’s license agreement with Motorola, including any obligation to make royalty payments to Motorola. The technology acquired from Motorola is being amortized over a period of 7.5 years. Fujifilm Patent Acquisition On July 23, 2012, the Company entered into a Patent Sale Agreement (the Agreement) with Fujifilm. Under the Agreement, Fujifilm sold more than 1,200 OLED-related patents and patent applications in exchange for a cash payment of $105.0 million, and costs of $4.5 million were incurred in connection with the purchase. The Agreement contains customary representations and warranties and covenants, including respective covenants not to sue by both parties thereto. The Agreement permitted the Company to assign all of its rights and obligations under the Agreement to its affiliates, and the Company assigned, prior to the consummation of the transactions contemplated by the Agreement, its rights and obligations to UDC Ireland Limited (UDC Ireland), a wholly-owned subsidiary of the Company formed under the laws of the Republic of Ireland. The transactions contemplated by the Agreement were consummated on July 26, 2012. The Company recorded the $105.0 million plus $4.5 million of costs as acquired technology, which is being amortized over a period of 10 years. Amortization expense related to acquired technology is currently expected to be as follows (in thousands):
Year |  | Projected Expense
2016 |  | $ | 10,999 |
2017 |  | 10,999 |
2018 |  | 10,999 |
2019 |  | 10,999 |
2020 |  | 10,999 |
Thereafter |  | 17,020 |
|  | $ | 72,015 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16265-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16323-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=26713463&loc=d3e16373-109275 + Details
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