Patents and Proprietary Rights

StemCells has exclusive or non-exclusive rights to a portfolio of patents and patent applications related to various stem and progenitor cells and methods of deriving and using them. These patents and patent applications relate to compositions of matter, methods of obtaining such cells, and methods for preparing, transplanting and utilizing such cells. Currently, StemCells' U.S. patent portfolio in the stem cell therapy area includes forty-three issued U.S. patents. In addition, StemCells has foreign counterparts to many of the U.S. applications and patents, about one hundred thirty of which have been issued. Over one hundred additional patent applications are pending worldwide.

StemCells believes that its patent portfolio gives it the dominant intellectual property position in the neural, tissue-derived stem cell field. The Company strategy is to be the first to identify, isolate and patent multiple types of human stem and progenitor cells, derived from human tissue, with commercial importance, to seek out and license intellectual property that it believes might be useful in connection with its products, and to further develop its intellectual property positions in-house and through research at scholarly institutions. StemCells has an aggressive program of protecting its intellectual property. The Company also believes that its know-how will provide a significant competitive advantage, and intends to continue to develop and protect its proprietary tools, methods, and trade secrets.