Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of [Chris Edwards].
Chris Edwards
I had a question regarding your royalty rate structure. Does your royalty rate percentage depend on the number of different phosphorescent materials used in display. Actually notes from a couple of your old presentation that I would just like to confirm?
Sid Rosenblatt
Our royalty rates are based upon the ASP of the average sale price of the products that they sell.
Chris Edwards
Of course, I am just trying to understand if a manufacturer adopts red and green, does that change your royalty rate basically?
Sid Rosenblatt
Well, we have actually different structures for different companies, and the current arrangements that we have with customers today, our royalty rate is a royalty for the right to incorporate phosphorescent materials into a display and they are not based upon number of colors that are used. Each customer is different.
Operator
Your next question comes from the line of Jim Ricchiuti Needham & Company.
Jim Richhiuti - Needham & Company
Sid, I am wondering if you can comment on, you had now a few quarters of reports from Samsung. Are there any observations that you can draw from this relative to predictability, or growth, or seasonality, what cam you tell us?
Sid Rosenblatt
I think we are starting to see a little clearer picture, but to be perfectly honest, I think the second quarter, and we have not seen what the third quarter looks like as of yet. Once we see this year, because this year they seem to be focusing on manufacturing and delivering of displays as in the past, it really jumped all over the place. So I think maybe after another quarter or two, we will have a good feel on the real progression. Right now, I do not have enough information that I can predict, but it is getting there.
Jim Richhiuti - Needham & Company
Can you remind us, Sid, or Steve, just about the current licensing agreement with Samsung. When does it expire, and maybe you could also talk about what you are seeing out there in terms of new licensees coming on?
Sid Rosenblatt
Well, the current agreement with Samsung expires at the end of June, 2010. We are obviously, based upon Steve's comments, you have got LG that is expanding it's OLED operations and talks about having new fab come online in the first part of next year. You have seen AUO, FPD demonstrating a number of different OLED products. We think that 2010, 2011 should show significant growth in the overall number of OLED products that are being shipped into the marketplace. We do see a lot of activity.
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