-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 P3CZrfLmER9JsHU15ZPw4sBRgN4ijwtYgVUIJK6nbJa9j6LJiCLLE8m2AQa/NR2S
 eH3mu5HAuM6AJ82o1o3r5Q==

<SEC-DOCUMENT>0000351998-07-000023.txt : 20071120
<SEC-HEADER>0000351998-07-000023.hdr.sgml : 20071120
<ACCEPTANCE-DATETIME>20071120122020
ACCESSION NUMBER:		0000351998-07-000023
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071115
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20071120
DATE AS OF CHANGE:		20071120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DATA I/O CORP
		CENTRAL INDEX KEY:			0000351998
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				910864123
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10394
		FILM NUMBER:		071258952

	BUSINESS ADDRESS:	
		STREET 1:		10525 WILLOWS RD NE
		STREET 2:		P O BOX 97046
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98073-9746
		BUSINESS PHONE:		4258676922

	MAIL ADDRESS:	
		STREET 1:		P O BOX 97046
		STREET 2:		10525 WILLOWS RD NE
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98073-9746
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8kip111907.htm
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff" style='font-family:"Times New Roman"'>

<div style='width:600;'>



<div style='border:none;border-bottom:solid .05em;padding:0in 0in 1.0pt 0in'>
<div style='border:none;border-bottom:solid .25em;padding:0in 0in 1.0pt 0in'><p>&nbsp;</p> </div> </div> <BR>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=4>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>WASHINGTON, D.C. 20549</font></B></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<HR noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><B><font SIZE=4>FORM 8 - K</font></B></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<HR noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><B><font SIZE=2>CURRENT REPORT</font></B></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Date of Report (Date of earliest event reported): November 15, 2007</font></b></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<HR noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:8pt;text-align:center;'><b><font size=5>Data I/O Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=1>(Exact name of registrant as specified in its charter)</font></b></p>


<p style='margin-top:12pt;margin-bottom:0pt;'>
<HR noshade align="center" Width="120" >

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Washington</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>(State of other jurisdiction of incorporation)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="734" style='border-collapse:collapse'>
    <tr >
        <td width="367" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:16pt;margin-bottom:0pt'><b><font size=2>0-10394</font></b></p> </td>
        <td width="367" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:16pt;margin-bottom:0pt'><b><font size=2>91-0864123</font></b></p> </td> </tr>
    <tr >
        <td width="367" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:16pt;margin-bottom:0pt'><font size=2>(Commission File Number)</font></p> </td>
        <td width="367" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:8pt;margin-bottom:0pt'><font size=2>(IRS Employer Identification No.)</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><b><font size=2>6464 185<sup>th</sup> Avenue NE, Suite 101, Redmond, WA 98052</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Address of principal executive offices) (Zip Code)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=1>Registrant&#146;s telephone number, including area code:  (425) 881-6444</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Not Applicable</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>(Former name or former address, if changed since last report)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:16pt;text-align:center;'><b><font size=2>Page 1 of 2 Pages</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Item 1.01 Entry into a Material Difinitive Agreement</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><b><font size=2>Sale </font><font size=2>of selected patents and patent applications</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Data I/O Corporation announced today that it has signed an agreement on November 15, 2007 for the sale of selected patents and patent applications to Leannoux Properties AG L.L.C. for net proceeds of approximately $3.3M and expects to report a net gain of approximately $2.1M, subject to customary closing conditions. The proposed patents and patent applications to be sold relate primarily to technology used in Data I/O Corporation&#146;s Proline RoadRunner product line. Data I/O will retain a non-exclusive, royalty-free license to use the technology covered by these patents and applications. Additional payments are due to Data I/O Corporation upon license or transfer of the proposed patents and patent applications to certain third parties. However Data I/O Corporation does not currently anticipate receiving any such payments. The Patent Purchase Agreement includes customary representations and warranties for a transaction of this
nature, including without limitation, representations and warranties regarding authority, title and validity.
</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Most of the patents to be sold relate to technology that the company has been practicing for a number of years.&nbsp;The sale does not include technology related to the firm&#146;s most recent development programs. Regarding the proposed transaction, Fred Hume, President and CEO of Data I/O Corporation said, &#147;This transaction should deliver a substantial financial benefit to our shareholders. It monetizes the value of these patents, avoids future annual maintenance and patent defense expenses, and allows Data I/O royalty-free use of these patents.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The party to the agreement, Leannoux Properties AG L.L.C., is an unrelated party with no other material relationship to Data I/O Corporation.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><b><font size=2>Forward Looking Statement </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Statements in this report concerning agreement closing and expectations of future payments and any other statement that may be
construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks,
uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such
statements. These factors include uncertainties as to completion of closing conditions and future licensing expectations and other
risks including those described from time to time in the Company's filings on Forms 10K and 10Q with the Securities and Exchange
Commission (SEC), press releases and other communications.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>SIGNATURE</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="348" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="156" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Data I/O Corporation</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="413" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>November 19, 2007</font></p> </td>
        <td width="221" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By _</font><u><font size=2>/s/ Joel S. Hatlen</font></u><font size=2>________</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="300" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="108" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Joel S. Hatlen</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="305" style='border-collapse:collapse; '>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="113" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President</font></p> </td> </tr></table>
</div>



<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="360" style='border-collapse:collapse'>
    <tr >
        <td width="192" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="168" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


</div>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
