Tessera Technologies, Inc. (NASDAQ: TSRA) (the "Company") announced
today that the International Court of Arbitration of the International
Chamber of Commerce (ICC) issued an award in favor of Tessera, Inc. in
its dispute with Amkor Technology, Inc. Based on a preliminary review of
the award, Tessera, Inc. now expects to receive in excess of $130
million from Amkor, in addition to the approximately $20 million Amkor
paid to Tessera, Inc. in the third quarter of 2012 in connection with
the current dispute.
"We help advance innovation by rewarding engineers whose inventions have
been successfully implemented by commercial entities," said Bernard J.
"Barney" Cassidy, president of Tessera Intellectual Property Corp. "We
are grateful that the tribunal has ruled in our favor in this dispute -
by doing so they have confirmed the strength of the Tessera, Inc. patent
portfolio as well as the bedrock legal principle that companies should
abide by their agreements."
The current arbitration, which began in 2009, marks the second time the
two companies have gone to the ICC to resolve the amount of royalties
owed in connection with the now-terminated patent license agreement. The
first arbitration lasted three years and in 2009 resulted in an award to
Tessera, Inc. of $64.1 million. The next part of the current arbitration
will involve calculations by damages experts to determine the precise
amount owed. Under the rules of the case and of the ICC, the parties
have only a limited ability to make public disclosures about the
arbitration. As such, the precise amount and timing of Amkor's payment
is not available.
Tessera, Inc. will also continue to pursue additional patent damages and
equitable remedies in further proceedings before the ICC, as well as in
the United States District Court, based in part on the arbitration
tribunal's finding that Amkor's advanced packaging technology uses
Tessera, Inc.'s intellectual property.
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 risk
and uncertainties that could cause actual results to differ
significantly from those projected, particularly with respect to the
amount Tessera, Inc. expects to receive from Amkor and the next phases
of, and the pursuit of additional damages and remedies in, the
proceedings before the ICC and in the United States District Court.
Material factors that may cause results to differ from the statements
made include the plans or operations relating to the Company's
businesses; market or industry conditions; 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 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; 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 ("DOC") of its recently acquired camera module
manufacturing facility 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 DOC 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 DOC 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 Sept. 30, 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 segment, managed by Tessera Intellectual
Property Corp., generates revenue from manufacturers and other
implementers that use our technology. Our DigitalOptics business
delivers innovation in imaging systems for smartphones. For more
information call 1.408.321.6000 or visit www.tessera.com.
Tessera, the Tessera logo, DOC, the DOC logo, the mems|cam logo,
Invensas, and the Invensas logo 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.
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