- Amkor Found in Material Breach of License Agreement -
- Tessera Awarded Monetary Damages for Amkor's Use of Tessera's
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 28, 2008--Tessera
Technologies, Inc. (NASDAQ: TSRA) announced that the arbitration panel
in Tessera, Inc.'s contractual dispute with Amkor Technology, Inc. has
issued a confidential interim award with all three members of the
panel unanimously finding, among other things, that the asserted
Tessera(R) patents are valid and enforceable and that certain of
Amkor's products are made under the asserted Tessera patents. The
panel found that Tessera is owed monetary damages for Amkor's material
breach of its license agreement for failure to pay royalties on a
broad range of products. The panel will issue its final award stating
the exact amount of damages at a later date.
"The panel's decision to uphold Tessera's patents as valid and
enforceable demonstrates once again the strength of our intellectual
property," said Henry R. "Hank" Nothhaft, president and CEO of
Tessera. "We expect that the monetary award will be material."
The patents at issue in the arbitration are U.S. Patent No.
5,852,326 (the '326 Patent), U.S. Patent No. 6,433,419 (the '419
Patent), U.S. Patent No. 6,465,893 (the '893 Patent), and U.S. Patent
No. 5,679,977 (the '977 Patent). The '326 and '419 patents are also
being asserted in the U.S. International Trade Commission (ITC)
Investigation No. 337-TA-605 (Wireless ITC action) and in
Investigation Number 337-TA-649 (the Subcon ITC Action). The '977
patent is also being asserted the Subcon ITC Action and in
Investigation Number 337-TA-630 (the DRAM ITC Action).
Tessera is a leading provider of miniaturization technologies for
the electronics industry. The company licenses its innovations, as
well as delivers products based on these innovations to promote the
development of the supply chain infrastructure, thus enabling
manufacturers to get the right product to market, at the right time.
Tessera is headquartered in San Jose, California. For information call
1.408.894.0700 or go to www.tessera.com.
Safe Harbor Statement
This press release contains forward-looking statements, which are
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties that could cause actual results to differ
significantly from those projected. Material factors that may cause
results to differ from the statements made include delays, setbacks or
losses relating to our intellectual property or intellectual property
litigations, or any invalidation or limitation of our key patents;
fluctuations in our operating results due to the timing of new license
agreements and royalties, or due to legal costs; changes in patent
laws, regulation or enforcement, or other factors that might affect
our ability to protect our intellectual property; the risk of a
decline in demand for semiconductor products; failure by the industry
to adopt our technologies; competing technologies; the future
expiration of our patents; the future expiration of our license
agreements and the cessation of related royalty income; the failure or
refusal of licensees to pay royalties; failure to achieve the growth
prospects and synergies expected from acquisition transactions; and
delays and challenges associated with integrating acquired companies
with our existing businesses. You are cautioned not to place undue
reliance on the forward-looking statements, which speak only as of the
date of this release. Tessera's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended December 31, 2007 and its Quarterly Report on Form 10-Q for
the quarter ended June 30, 2008, include more information about
factors that could affect the company's financial results.
Tessera and the Tessera logo are trademarks or registered
trademarks of Tessera Inc. or its affiliated companies in the United
States and other countries. All other company, brand and product names
may be trademarks or registered trademarks of their respective
CONTACT: Tessera Technologies, Inc.
Michael Anthofer, EVP and CFO, 408-321-6711
Moriah Shilton, Investor Relations, 408-321-6713
SOURCE: Tessera Technologies, Inc.