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Tessera gets better of patent dispute case against Qualcomm, Motorola and others
TT Bureau |  |  21 May 2009

While repealing a previous ruling, United States International Trade Commission on Wednesday ruled the judgment in favor of Tessera, who had alleged some wireless manufacturers of rolling out chip packages that infringe on its patents.

 

The six defendants in the case are Qualcomm, Motorola, Spansion, STMicroelectronics, Freescale Semiconductor and ATI Technologies, which is now owned by AMD.

 

The ruling declared that these companies infringed Tessera patents for the packaging of small-format semiconductor and directed a freeze on imports of certain chips by the companies that aren’t covered by licenses and force them to stop selling unlicensed chips they have on the U.S. market.

 

In December 2008, a judge who is part of the U.S. International Trade Commission had ruled that the companies did not infringe on Tessera''s patents. Tessera responded by appealing to the full International Trade Commission.

 

Whilst referring to the decision as a ‘powerful victory for Tessera’, Tessera CEO Henry Nothhaft said it will require the other companies to license Tessera's technology if they intend to use it in the future.

 

Further he added that ITC complaints are “strategic” to push chipmakers to license its technology.

 

The total royalties accounted for $220.3 million, or 89 percent of Tessera’s $248.3 million in revenue last year.

 

However, the commission's order is subject to review by President Obama. If he doesn’t approve the judgment, the defendants can take the case to the U.S. Court of Appeals in Washington.

 

Tessera, which develops miniaturization technology for electronics makers, had asked the ITC in December to consider banning imports of the packaging products.

 

Qualcomm said in a statement that it had already shifted the U.S. supply of the chips in question to a licensed supplier, Amkor.

 

“This permits Qualcomm to continue to supply the U.S. market without interruption,” the company said.

 

Shares of Tessera surged as high as 23 percent to $19.80.

    
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21 May 2009(IST)  
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