Tessera Technologies, Inc. (NASDAQ:TSRA) (the “Company”) announced today
that the International Court of Arbitration of the International Chamber
of Commerce (ICC) issued an interim award in favor of Tessera, Inc. in
its dispute with Amkor Technology, Inc. The ICC tribunal confirmed that
the Amkor license agreement had been properly terminated by Tessera,
Inc. in February 2011. Based on a preliminary review of the interim
award, Tessera, Inc. intends to seek an amount in excess of $125 million
“We continue to seek royalties for use of the Tessera, Inc. patent
portfolio, which has delivered over $1 billion in revenue during the
past decade,” said Richard Chernicoff, president of Tessera Intellectual
Property Corp. “We use litigation in those instances where we are unable
to achieve reasonable agreements or where others breach their agreements
with us. The current arbitration will bring clarity to the amounts that
should have been paid by Amkor under the license.”
The current arbitration marks the second time the two companies have
gone to the ICC to resolve the amount of royalties owed under the
now-terminated patent license agreement. The first arbitration lasted
three years and in 2009 resulted in an award to Tessera, Inc. of $64
million. The interim award announced today in the second arbitration,
which began in 2009, contains factual and legal conclusions on which the
tribunal will base one or more final awards specifying the amount of
damages owed by Amkor. Under the rules of the case and of the ICC, the
parties have only a limited ability to make public disclosures about the
Concurrently with the publication of this press release, the Company
will post a PowerPoint presentation to its website at http://ir.tessera.com/.
This presentation is being made available in order to provide the
investment community with additional information on the Amkor
arbitration news released today.
Safe Harbor Statement
This document 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, particularly with respect to the
amount Tessera, Inc. expects to seek from Amkor and the Tessera, Inc.
patent portfolio. Material factors that may cause results to differ from
the statements made include the plans or operations relating to the
businesses of Tessera Technologies, Inc.; market or industry conditions;
the expiration of license agreements and the cessation of related
royalty income; the failure, inability or refusal of licensees to pay
royalties; initiation, delays, setbacks or losses relating to the
Company’s intellectual property or intellectual property litigations, or
invalidation or limitation of key patents; the timing and results, which
are not predictable and may vary in any individual proceeding, of any
ICC ruling or award, including in the Amkor arbitration; fluctuations in
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 the Company’s ability to
protect or realize the value of its intellectual property; the risk of a
decline in demand for semiconductor and camera module products; failure
by the industry to use technologies covered by the Company’s patents;
the expiration of the Company’s patents; the Company's ability to
successfully complete and integrate acquisitions of businesses,
including the integration by DigitalOptics Corporation of Flextronics’s
camera module business in Zhuhai, China; the risk of loss of, or
decreases in production orders from, customers of acquired businesses;
financial and regulatory risks associated with the international nature
of the Company’s businesses; failure of the Company’s products to
achieve technological feasibility or profitability; failure to
successfully commercialize the Company’s products; changes in demand for
the products of the Company’s customers; limited opportunities to
license technologies and sell products due to high concentration in the
markets for semiconductors and related products and camera modules; the
impact of competing technologies on the demand for the Company’s
technologies and products; failure by DigitalOptics Corporation to
become a vertically integrated camera module supplier; and the reliance
on a limited number of suppliers for the components used in the
manufacture of DigitalOptics products. You are cautioned not to place
undue reliance on the forward-looking statements, which speak only as of
the date of this release. The Company's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for the
year ended Dec. 31, 2011, and its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2012, include more information about factors
that could affect the Company’s financial results. The Company assumes
no obligation to update information contained in this press release.
Although this release may remain available on the Company’s website or
elsewhere, its continued availability does not indicate that the Company
is reaffirming or confirming any of the information contained herein.
About Tessera Technologies, Inc.
Tessera Technologies, Inc. is a holding company with operating
subsidiaries in two segments: Intellectual Property and DigitalOptics.
Our Intellectual Property business generates revenue from patented
innovations through license agreements with semiconductor companies and
outsourced semiconductor assembly and test companies. Tessera, Inc.
pioneered chip-scale packaging solutions for the semiconductor industry.
Our DigitalOptics business delivers innovation in imaging and optics
with products and capabilities that enable expanded functionality in
increasingly smaller devices. Our miniaturized camera module solutions
provide cost-effective, high-quality camera features, including Micro
Electro Mechanical Systems (“MEMS”)-based autofocus, extended depth of
field (“EDoF”), zoom, image enhancement and optical image stabilization.
We also offer customized micro-optic lenses from diffractive and
refractive optical elements to integrated micro-optical subassemblies.
For information call 1.408.321.6000 or go to www.tessera.com.
Tessera, Tessera, Inc., the Tessera logo, DigitalOptics Corporation, and
Invensas Corporation are trademarks or registered trademarks of
affiliated companies of Tessera Technologies, Inc. in the United States
and other countries. All other company, brand and product names may be
trademarks or registered trademarks of their respective companies.