FORM 8–K — CURRENT REPORT

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 28, 2006

TEKNOWLEDGE CORPORATION

(Exact name of registrant as specified in its charter)


Delaware	0-14793	94-2760916
(State of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

1800 Embarcadero Road, Palo Alto, California 94303

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (650) 424-0500

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Item 8.01.	Other Events


	On June 28, 2006, Teknowledge Corporation (the “Company”) agreed to license its US Patent No. 6,029,175, along with all other patents currently held by Teknowledge (the “Teknowledge Patents”). The identity of the Licensee and the specific terms of the license are confidential. The license provided that the Licensee make a one-time payment of $999,000.00 to Teknowledge, and that Teknowledge grant to Licensee a nonexclusive, worldwide, irrevocable, perpetual royalty free license under the Teknowledge Patents.

On June 28, 2006, Teknowledge Corporation (the “Company”) agreed to license its US Patent No. 6,029,175, along with all other patents currently held by Teknowledge (the “Teknowledge Patents”). The identity of the Licensee and the specific terms of the license are confidential. The license provided that the Licensee make a one-time payment of $999,000.00 to Teknowledge, and that Teknowledge grant to Licensee a nonexclusive, worldwide, irrevocable, perpetual royalty free license under the Teknowledge Patents.

SIGNATURES

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.

	Teknowledge Corporation
	(Registrant)

Date: July 5, 2006	by: /s/ Ted Poulter
	Ted Poulter, Financial Reporting Manager

TEKNOWLEDGE CORP 8-K