Xperi (XPER)

[berniel]

https://www.americanbulls.com/SignalPage.aspx?lang=en&Ticker=XPER

[berniel]

[Monksdream]

XPER under $9

[TheHappyVulcan]

New 52 week high again today!

Just saying.

Spock

[TheHappyVulcan]

New 52 week high today. Yes!


Spock

[saturn_five]

XPER holding near it's 52-week high. Big revenue from Comcast deal is huge catalyst .... Comcast market cap is $220 Billion, about 100 X more than XPER.
XPER paying down debt, buying back shares AND paying a cash dividend $$$$.
Will be interesting to see upcoming strategy for separating current XPER into two distinct companies;
Product Company vs. IP /licensing/patents Company.
Seems likely that separation will be completed by end of 2021 ?
Also, 2 different cash dividend strategies ?
XPER
glta

[Paullee]

DTS AutoSense Achieves ISO9001 Certification
Wed, January 20, 2021, 8:00 AM
World’s first occupant monitoring solution designed into 2021 vehicles achieves key quality certification for the design, development, and deployment of software computer vision technologies

DTS®, a global leader in next-generation audio, imaging and sensing technology, and a wholly owned subsidiary of Xperi Holding Corporation (NASDAQ: XPER) ("Xperi"), today announced that today announced that Xperi’s FotoNation subsidiary in Romania has achieved ISO9001 Certification. FotoNation is responsible for developing the DTS AutoSenseTM camera-based Occupancy and Driver Monitoring solutions.

ISO9001 certification is the world’s most popular management system standard. The standard is based on a number of quality management principles including a strong customer focus, leadership, process approach, and continual improvement. Using ISO 9001 helps ensure that customers receive consistent, good-quality products and services.1

"This is another significant milestone in the commercialization of our in-cabin sensing product," said Jeff Jury, Xperi SVP and general manager, Automotive. "This ISO 9001 certification ensures we can exceed the quality expectations of the global automotive market, and allows us to continue on our mission to help save the lives of vehicle passengers and drivers while improving the overall in-cabin experience."

DTS AutoSense comprises a Driver Monitoring Solution (DMS) and an Occupancy Monitoring Solution (OMS). Working together the OMS and DMS provide insights into activity inside the vehicle, including the driver, passengers, pets and objects, to create a better, safer experience. DTS AutoSense OMS is the world’s first occupancy monitoring solution to be designed into passenger vehicles projected to be on the road in 2021. It was named the ‘Overall AutoTech Solution of the Year’ in the 2020 AutoTech Breakthrough Awards, as well as a top safety pick in the 2020 CLEPA Innovation Awards.

DTS AutoSense uses a single camera and leverages the company’s extensive experience with image processing (20+ years) and artificial intelligence. Its advanced computer vision and machine learning techniques enable vehicles to sense, in real time, the presence of occupants and objects (for example, a laptop accidentally left in the vehicle). The technology can also enable personalization of infotainment recommendations, such as playlists, content, volume of music, choice of radio station options, in-cabin temperature adjustments or any setting that can be adapted to a user’s specific taste.

The DTS AutoSense solutions are deployed using edge computing, without a need for cloud connectivity, meaning they are designed to enable all data to remain within the vehicle. Powered by artificial intelligence, each feature relies on proprietary neural networks designed, trained, and tested by the company’s team of over 100 AI/ML engineers, artists, scientists and problem solvers.

In addition to DTS AutoSense, Xperi’s automotive technologies include DTS Connected Radio (DTS AutoStage) and HD Radio, all designed to improve the in-vehicle experience, making it safer and more enjoyable. DTS AutoStage, built on the largest and deepest data set of broadcast and music metadata, combines over the air broadcast with IP-delivered content for a robust, richer, more personalized in-cabin infotainment experience. HD Radio, which resides in more than 70 million automobiles, is the most successfully deployed commercial digital radio system worldwide.

[TheHappyVulcan]

Im new to this company. After doing some studying that revealed how much I do not know, then learning about those particular concepts, I became excited about what this company does and more importantly what it can do. I got set on a search after getting roped into one of those rambling, teasing Motley Fool ads that go on for half an hour only to reveal they want to sell you a trading platform.

Several possible companies came to mind as the narrator droned on and as hints got parsed out along the way. I was googling the whole time and XPER seemed to fit into the list of hints pretty well. So , here I am.

As mentioned in one of the previous posts, IP licensing companies traditionally trade at 5-6 times annual revenue. This one trades at 2 X. Price targets in the medium term future are a fair bit higher than the current pps. So, I am in.


SPock

[Paullee]

DTS Connected Radio Launches in Major Global Car Platform, Redefines In-Vehicle Listening Experience
Mon, November 2, 2020, 8:00 AM EST
The only global connected radio solution comes to market in latest Mercedes-Benz S-Class; brings richer, more personalized, audio-visual experience to the digital dashboard

DTS®, a global leader in next-generation audio, imaging and sensing technology, and a wholly owned subsidiary of Xperi Holding Corporation (NASDAQ: XPER) ("Xperi"), today announced the launch of DTS Connected RadioTM in the Daimler MB User Experience (MBUX), currently coming to market in the new Mercedes-Benz S-Class.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201102005182/en/


DTS Connected Radio & Mercedes-Benz User Experience (Photo: Business Wire)

"The Mercedes-Benz S-Class is redefining the automotive luxury segment with in-dash innovations that include more personalization and access to content," said Jeff Jury, GM Automotive at Xperi. "We are proud to be part of the new state-of-the-art MBUX multi-media system with our DTS Connected Radio platform, which is redefining the in-dash radio listening experience. We are partnering with Daimler to help make what they call the ‘Third Place’ – a refuge between home and workspace – more delightful."

DTS Connected Radio pairs over the air broadcast content with IP-delivered metadata (such as information about on-air radio programs, talent, artist, song, station contact, etc.) and content (lyrics, related events, podcasts) personalized to create a unique and engaging radio-listening experience in markets around the world. DTS Connected Radio enables a seamless transition for the listener from broadcast to internet stream when the vehicle drives out of broadcast range.

Available in 48 countries, DTS Connected Radio’s content is sourced from 48+ thousand radio stations, 40+ million tracks, 4+ million albums, 1+ million artist bios, and more – all aggregated, curated, and personalized to create the richest and most relevant in-vehicle radio listening experience.

Leveraging the world’s largest database of broadcast metadata – including up-to-date and world class music data – DTS Connected Radio features big beautiful art, comprehensive artist and album information and imagery, songs, playlists, content recommendations, lyrics, local events, podcasts, and more, enriching broadcasts from thousands of radio stations around the world.

Radio, which this year marks the 100th anniversary of the first US radio broadcast, remains the media channel of choice for consumers, surpassing television1, and reaches more adults in the 25 - 54 age range than any other audio source.2 According to Strategy Analytics, radio is the number one ‘must have’ dashboard feature, and the most used, when compared to other streaming offerings3.

"Consumers want radio front and center in the dashboard – but they want it to be as rich and engaging as other media platforms and experiences, particularly a mobile experience," continued Jury. "With DTS Connected Radio, we are on a mission to ensure that automakers are able to leap ahead, and give today’s consumers what they want: a more expansive, more immersive listening experience, one that is visually and textually rich, enhances discovery and personalization, and includes multiple pieces of listening content and metadata individualized to each consumer’s needs, wants, and listening habits."

DTS Connected Radio’s design flexibility, global coverage, secure and scalable network, and privacy compliant platform are engineered to make OEM adoption easy and customizable. The DTS Connected Radio ecosystem enables each OEM and Tier 1 to create a feature-rich, flexible HMI design while utilizing low data/computer resources in the vehicle and is compatible with analog AM/FM and global digital radio formats including DAB, DAB+ and HD RadioTM.

In addition to DTS Connected Radio, Xperi’s automotive technologies include DTS AutoSenseTM, and HD Radio, all designed to improve the in-vehicle experience, making it safer and more enjoyable. DTS AutoSense comprises occupancy and driver monitoring systems implemented at the edge. HD Radio, which resides in more than 70 million automobiles, is the most successfully deployed commercial digital radio system worldwide.

About Xperi Holding Corporation

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via our brands: DTS, HD Radio, IMAX Enhanced, Invensas, TiVo, and by our startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers around the globe.

Xperi, DTS, IMAX Enhanced, Invensas, HD Radio, Perceive, TiVo and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi Holding Corporation in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

1Nielsen Audio Today 2019 total persons 12+.
2Scarborough USA+ 2019, Release 1 (Jan 18 - May 19).
3Strategy Analytics 2019 In-Vehicle UX Buyer Analysis Report.

[Paullee]

Xperi Receives Favorable Decision at ITC
Business Wire Business Wire•July 28, 2020
Rovi Guides, Inc. ("Rovi"), a subsidiary of Xperi Holding Corporation (NASDAQ: XPER) ("Xperi"), announced today that it received a favorable initial determination ("ID") issued today by Administrative Law Judge MaryJoan McNamara of the International Trade Commission ("ITC") finding that Comcast’s X1 platform infringes on two Rovi patents and recommends the issuance of a limited exclusion order and cease and desist order.

The patents at issue in the order cover innovations generally relating to multi-room DVR and communication between multiple set-top boxes using MoCA technology. These patents are just a few of approximately 11,000 Xperi patents and applications broadly licensed across its platform to companies in the media and semiconductor markets.

"We are pleased with this decision, which is now our third favorable decision at the ITC against Comcast. While the decision represents a positive and key milestone in our litigation, our ultimate goal remains to ensure that we receive fair value for our innovations and that we reach a mutually acceptable agreement with Comcast to allow the ongoing use of Rovi patented technology, just as we have done broadly with the other major US Pay-TV providers," said Samir Armaly, Xperi’s president of IP licensing. "Notably, even while being in litigation over the past few years, our IP business has continued to successfully license, renew or extend licensing agreements across the industry."

The full ID is subject to confidentiality restrictions. Thus, no further details on the substance of the decision, including details about the scope of the ALJ’s infringement finding, are available at this time though we may provide a further update as more information becomes available.

The ID is now subject to review by the Commissioners at the ITC. Any remedies, including a limited exclusion order, would not issue until after the completion of the investigation, which at this time is scheduled for November 30, 2020.

Background Information

On June 1, 2020, the merger of Xperi Corporation and TiVo Corporation was completed, forming a unique digital entertainment technology platform and one of the industry’s largest and most diverse intellectual property (IP) licensing platforms.

The combined company will continue to invest in advanced technologies that bring new and exciting inventions to its licensing customers. With a shared track record of creating value through intellectual property licensing, the combined IP portfolio spans more than 11,000 patents and applications, with recurring subscriber-based IP revenue providing important stability and diversification for the business.

The scale achieved through the combined company will also enable the combined company to invent, develop and deliver technologies that enable extraordinary experiences, ultimately making entertainment more entertaining and smart devices even smarter for tens of millions of individual consumers.

About Xperi Holding Corporation

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS, HD Radio, IMAX Enhanced, Invensas, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumer

[saturn_five]

Barron's and SA helped to power a nice upward move for XPER ... Monday's trading volume is about 3X higher than average.
( 30-day average volume = ~ 1 M shares. )
Hopefully, XPER mgmt was buying back some shares before the pop; plenty of $13's available, I bought a few.
( $150 M share buyback program announced in mid-June . )
XPER up 13 % to $16.85 in afternoon trading.
ITC decision pending ....
XPER $$$$

[Paullee]

from Barron's

Xperi Holding is an obscure San Jose—based company that has piled up a remarkable collection of tech patents—and the stock seems seriously underpriced. Xperi (XPER) was built through a multiyear series of acquisitions. The cornerstone deal was in June, when Xperi combined with TiVo, the once-iconic producer of digital video recorders.

With the TiVo deal closed, Xperi has 11,000 patents, many focused on video and audio technology; annual revenue of well over $1 billion; and more than $420 million in annual cash flow. Xperi has an enterprise value of about $2.4 billion, which seems absurdly low. Comparable companies like InterDigital (IDCC), Dolby Laboratories (DLB), and Rambus (RMBS) trade in the range of four to six times revenue; Xperi trades for under two times revenue.

To address that issue, Xperi plans to divide into two companies. CEO Jon Kirchner thinks that a split can unlock considerable value. About half of its business comes from patent licensing. The other half produces software, which it monetizes with a licensing model—similar to what Dolby does.

B. Riley analyst Eric Wold has a Buy rating on Xperi shares and a price target of $35—more than double their recent price of $15. “Considering the attractiveness of a combined portfolio…and continued evolution of media inside and outside the home, we see an opportunity for increased penetration of existing customer relationships with the combined offerings,” he wrote in a recent research note.

The kicker is TiVo’s long-running patent dispute with Comcast (CMCSA). TiVo has been asserting that Comcast’s X1 set-top box violates its patents. TiVo has sued Comcast three times before the U.S. International Trade Commission, seeking an injunction barring the sale of the X1 box. The first two times, TiVo won, but Comcast figured out workarounds and paid nothing. The third trial decision is due this week. Wold thinks that a win could mean as much as $55 million a year in royalty payments and a catch-up payment of as much as $275 million. But Wold isn’t counting on a win—even without one, Xperi looks remarkably cheap.

[saturn_five]

Quick look at pro analysts guesstimates on SA for XPER; only 4 opinions listed for non-premium SA visitors.
All ratings are 'bullish' or 'very bullish'.
Mean ( or Average ?) Price Objective at ~ $25.00
XPER market cap approaching $2 B.
Maybe $ 2B + ~ 5 % divvy will get some more institutional research + coverage .
Pending ITC decision is wildcard catalyst ?$$$
XPER pps breaks above $15 on 7/23/2020.
glta

[Paullee]

yes it was

https://seekingalpha.com/article/4354779-xperis-shares-are-surprisingly-cheap

[saturn_five]

New article on XPER posted 6/20 on SA. Title: "Xperi's shares are surprisingly cheap. "
glta
XPER

[saturn_five]

Thanks for posting info about XPER/Tivo. 26 followers for ihubz tivo board, only 8 followers for XPER.
Perceive Corp. launch looks very good.
glta
XPER

[Paullee]

Perceive Corporation Launches to Deliver Data Center-Class Accuracy and Performance at Ultra-Low Power for Consumer Devices
Business Wire Business Wire•March 31, 2020
Introduces breakthrough ErgoTM edge inference processor, delivering 4+ TOPS sustained and 55 TOPS/W, capable of processing large neural networks in 20mW
Selected by two of the leading providers of smart connected camera and security products to integrate advanced neural network applications into future products
Perceive Corporation, an edge inference solutions company, today launched the company and debuted its first product, the ErgoTM edge inference processor. Ergo brings breakthrough accuracy and performance to consumer devices such as security cameras, smart appliances, and mobile phones. The Ergo chip and reference board are currently being sampled to leading customers and are ready for mass production in the second quarter of 2020.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200331005134/en/

In an environment where consumers are demanding greater security and privacy, Ergo removes the need to send sensor data from devices to the cloud for analysis. Ergo’s real-time, on-device inference processing makes it ideally suited for devices where consumer experience and privacy of data such as video and audio are of paramount importance. Whether it is reducing false notifications in a security camera, extending battery life in a mobile device, or simplifying the user interface of a home appliance, Ergo improves key device features by enabling comprehension and intelligent reactions to surroundings—without compromising consumer security.

"Everyone wants smarter devices—but until now, only the cloud has provided the requisite accuracy," said Steve Teig, Chief Executive Officer of Perceive. "Perceive has developed novel, mathematically rigorous methods for inference that redefine what is possible in an edge device. Our Ergo chip delivers data center-class accuracy and performance in consumer devices, protecting privacy and security while running at ultra-low power."

Perceive was incubated by and is a majority-owned subsidiary of Xperi Corporation (Nasdaq: XPER), a leader in audio, imaging and semiconductor technology focused on creating innovative solutions for smart devices that enable extraordinary experiences for people around the world.

"Perceive’s launch today represents the culmination of two years of focused innovation and investment within Xperi that combines Perceive’s work on advanced machine learning with our unique experience in imaging, audio, and semiconductor technologies. The result is a truly game-changing smart device technology platform," said Jon Kirchner, Chief Executive Officer of Xperi. "With the potential to reach billions of devices across IoT in home, mobile, and automotive applications, the Perceive platform brings a new additional driver to our business and has the potential to unlock substantial future growth. We are dedicated to supporting Perceive as it comes out of stealth and accelerates its commercialization, partner engagement, and product rollout to realize the significant value of its technology."

Perceive Enables Customers to Deliver Groundbreaking Consumer Devices

There is a growing divergence between the limited capabilities of edge inference processors, or even applications processors, and the rising complexity of the most advanced neural networks, which until now could run only in data centers. Perceive bridges that gap by enabling multiple sophisticated networks such as YOLOv3, M2Det, and others to run on Ergo. By simultaneously providing high accuracy, high performance, and ultra-low power at the edge, Perceive enables device makers to provide a better experience with intelligent features for smart devices such as reducing incorrectly detected camera alerts for security customers, while extending battery life and improving privacy for consumers.

Along with the Ergo inference chip, Perceive is providing a complete solution to OEMs, including reference boards, as well as standard imaging and audio inferencing applications for common inferencing tasks. Customers can also tune the applications or create novel applications with support from Perceive. Recognized leaders in the connected camera and security industry have already selected Ergo to integrate advanced neural network applications into their future products.

"We have been working with industry leaders such as Arlo since our inception and look forward to supporting them as they build amazing products that take advantage of the capabilities of Ergo," said David McIntyre, Vice President of Marketing for Perceive. "We look forward to partnering with Arlo to reinforce our shared focus on privacy and customer-centric innovation."

No Compromises: Perceive Delivers Data Center-Class Accuracy, Performance, Security, and Privacy at Ultra-Low Power

The Ergo edge inference processor delivers more than 4 sustained GPU-equivalent floating-point TOPS, with the ability to run heterogeneous, large neural networks simultaneously, powering applications such as video object detection, audio event detection, and speech recognition. For example, Ergo can run YOLOv3 at up to 246 frames per second (batch size = 1) at 30 frames per second while consuming about 20 mW. Ergo supports a wide variety of currently popular styles of neural network for video, audio, and other sensor processing, including CNNs (multiple sizes of convolutions and residual edges), RNNs, LSTMs, and others, providing developers of camera, security, and other consumer products ample options for solving real-world problems.

Ergo requires no external RAM and its small, 7x7 mm package makes it well suited for use in consumer electronics such as phones and cameras. By eliminating the need to send data to the cloud for inference and by encrypting the neural networks, software, and access to the chip, Ergo enhances device security and privacy.

The chip’s ultra-high power efficiency of more than 55 TOPS/Watt—20 to 100 times the efficiency of alternatives—enables longer battery life and produces less heat, allowing for smaller and more versatile product packaging. The company has partnered with the leading specialty foundry, GLOBALFOUNDRIES, to manufacture the Ergo chip on their 22FDX® platform.

"Perceive’s Ergo chip is perfectly positioned to support the explosive growth of high-performance, ultra-low power IoT and edge devices," said Mike Hogan, Senior Vice President and General Manager of Automotive, Industrial and Multi-Market at GLOBALFOUNDRIES. "The combination of Perceive’s innovative architecture on GLOBALFOUNDRIES production proven 22FDX solution delivers superior performance, power and area efficiency, while accelerating time to market for its customer’s smart IoT and edge products."

About Perceive Corporation

Perceive makes devices smarter. The company develops breakthrough neural network inference solutions that push the performance-accuracy-power envelope, while protecting the security and privacy of consumers. By bringing data center-class accuracy and performance to the edge, Perceive enables device makers to deliver smarter products that understand their environment and respond intelligently. Founded in 2018, Perceive is a majority-owned subsidiary of Xperi Corporation (NASDAQ: XPER). Perceive is based in San Jose, California. For more information, visit https://www.perceive.io.

About Xperi Corporation

Xperi Corporation (Nasdaq: XPER) and its brands DTS, IMAX Enhanced, HD Radio, and Invensas, are dedicated to creating innovative technology solutions that enable extraordinary experiences for people around the world. Xperi’s solutions are licensed by hundreds of leading global partners and have shipped in billions of products in areas including premium audio, automotive, broadcast, computational imaging, computer vision, mobile computing and communications, memory, data storage, and 3D semiconductor interconnect and packaging. For more information, please call 408-321-6000 or visit www.xperi.com.

[Paullee]

TiVo and Xperi edge towards merger, and the creation of a $500 million licensing giant

Of all the M&A deals announced in recent years, few promise to have as big an impact on the licensing market as the proposed merger between Xperi and TiVo announced late last year. Overall, the two would appear to have little in common. The former focuses on tech licensing with a particular strength in the semiconductor space, while the latter is a leader in DVRs and TV streaming. It’s a combination that has left some interested observers in the licensing sector scratching their heads.

But the pair do, at least, have multi-million dollar IP licensing businesses in common and, once this merger is finalised at some point in the second quarter of this year, the ultimate plan is for a combined licensing arm to be spun-out from the combined product business. Xperi CEO John Kirchner made that plain in an analyst call this week to discuss his company’s fourth quarter results. He boasted that on current forecasts, the revenues the new operation could generate would be $500 million. “On a standalone basis this will be the largest public licensing company,” he said on the call.

More details on the merger were disclosed earlier this week in an SEC filing. This gives a fairly detailed account of TiVo’s attempts to find a buyer for the business following its announcement in early 2018 that it was undergoing a strategic review.

According to the filing, the company engaged with 48 different parties - 27 strategic and 21 private equity/financial - before whittling that down to 26. It then signed non-disclosure agreements with all of these. From that group, TiVo received nine preliminary offers. However, none passed muster with the board of directors for a variety of reasons, including not valuing the business appropriately.

The document then discloses that Xperi also considered a radical strategic overhaul by looking to sell its IP licensing operation. That process, which began in October 2018, led to the company contacting 20 potential buyers, signing non-disclosure agreements with 11 of them and considering three preliminary offers.

However, none of those offers ascribed, “a valuation to Xperi’s licensing business in excess of its cumulative existing under contract net cash flows”, according to the SEC filing. That led the business to discontinue the sale process in early 2019. Then a few months later, after an approach from TiVo, the talks began about the pair's possible merger.

So, assuming that there are no last-minute hitches to the merger plans and the spin-off of the licensing business proceeds as planned, by the second half of next year we could be talking about a new standalone IP operation that dwarfs InterDigital, the current leader in the space. But as the focus starts to turn to the prospective spin-out, several key questions will need to be answered.

Who will lead a combined, independent IP business?

Among the internal candidates, TiVo’s IP head Arvin Patel and Murali Dharan, the head of Tessera, Xperi’s licensing division, will presumably feature in the discussions. Patel is a former IBM in-houser who headed up Rovi’s IP function for four years before moving to Technicolor to become its chief IP officer. He then returned to California in 2017 to become TiVo’s CIPO after the company’s 2016 acquisition by Rovi (the combined business kept the TiVo name).

Dharan also has deep roots in the IP licensing world having spent 15 years at IP Value. After stepping down as its CEO in 2017, he then joined Xperi to head up the Tessera licensing arm. His chances of landing the top role might be helped by the fact that Xperi’s current CEO and CFO are set to take the top roles after the merger. However, neither Dharan nor Patel have the experience of leading a large public company.

If the company looks for an external candidate, then the question may boil down to whether it opts for someone with a track record in the IP industry or an outsider who has experience of running a public company.

Buy more assets or stick with what you know?

Whoever takes the top role will be handed control of essentially two very different patent portfolios. This provides the benefit of diversification and provides some hedge against recalcitrant licensees in either of the sectors where Xperi’s and TiVo’s assets are focused. The former’s large licences are with the likes of Samsung and SK Hynix while the latter’s biggest deals are with the major US cable and satellite operators (except for the current major holdout Comcast).

With a portfolio of more than 3,000 US patents, the new business will hardly be short of assets to monetise but it will presumably need a pipeline of new grants for longer term growth. At a time when patents remain relatively cheap, even though prices are rising, and with many operating companies looking to slim down their portfolios, the new business may find that there are plenty of acquisition opportunities to broaden out its asset base even further.

Is there a future as a public company?

It’s no secret that IP licensing businesses have something of a chequered history as public companies. Typically lumpy revenues do not help their CEOs’ efforts to educate shareholders about their growth stories. Throw in the challenges of sometimes having to assert rights in costly and lengthy litigation fights, as well as much higher levels of statutory transparency than private concerns, and the benefits of being a public company in the IP space rarely appear that attractive when markets are not booming.

Of course, any attempt to take the new licensing business private will depend on whether there are investors willing to pay up. Given the troubles both Xperi and TiVo had in finding buyers through 2018 and into last year, delisting might have to wait until the new company has had time to bed-in and convince investors of its long-term plans.
Richard Lloyd

Author | Editor

[e-mail]


https://www.iam-media.com/non-practising-entities/tivo-and-xperi-edge-towards-merger-focus-turns-creation-of-new-500

[Paullee]

The IBM patent selloff continued right up until its decision to join LOT Net
As we revealed yesterday, IBM has joined the License on Transfer Network (LOT) in a move that has some big implications for the company’s monetisation strategy going forward.

It had became apparent that Big Blue was likely to sign up to the defensive operator after its acquisition of Red Hat, which closed last July. For one thing, it signaled its intent to support various initiatives that Red Hat was a member of, including LOT; while the company’s flurry of patent dealmaking through the course of last year suggested that something was in the air.

Being a LOT member does not rule out selling patents, but it does place significantly more encumbrances on them under certain circumstances and therefore potentially reduces their value.

Perhaps with that in mind, IBM's 2019 patent sales spree continued right up until the end of the year. Records on the USPTO’s assignment database showing that IBM closed a deal with Tessera, the IP licensing arm of Xperi, in late December. According to the records (which you can see here, here and here), Tessera picked up more than 400 applications and grants, many of which related to semiconductor technology.

That deal follows other major IBM sales through the course of late 2018 and 2019. These included deals with with operating companies Pure Storage, Wayfair and HCL Technologies, and the NPE Daedalus. The sales to Xperi, Pure Storage and Daedalus alone involve around 2,500 US assets.

But while the tech giant may remain an attractive source of supply on the secondary market for operating companies, its membership of LOT means that deals with NPEs are now most likely off the table.

That’s because other members of the defensive network automatically receive a licence to any assets sold by a member to a patent assertion entity (PAE). LOT says an outfit is a PAE (or, as it likes to term it, a patent troll), if: "The entity (including its parent and any subsidiaries) generates more than half its total revenue from Patent Assertion in a twelve month period, or if the entity has a plan approved by senior management to do so."

Although more than 50% of Xperi’s revenues have come from semiconductor and IP licensing (as it appears on the company’s balance sheet) in the past, in 2018 the company’s product licensing arm accounted for the majority of revenue.

However, while Xperi itself may not now qualify as a PAE under LOT’s regulations, Tessera probably does. Getting the sale done prior to joining LOT makes that academic, though, as divestments that occur before a member joins the network do not come into the equation.

Overall, IBM’s sales campaign throughout 2019 at least suggests that Big Blue has been only too well aware that its patents were going to be relatively less attractive to some players once it had become a LOT Net member.

Beyond Big Blue, the transaction is also significant for Xperi. Late last year it announced proposals to merge with TiVo in a move that would create a broad based tech business with one of the largest patent licensing operations around.

The deal is still waiting for the necessary regulatory and shareholder approvals. However, assuming it gets the green light the combined company will boast more than 10,000 patents and applications. So the IBM assets add to what is already shaping up to be a very formidable portfolio.

[Paullee]

Toshiba Can't Dodge Unpaid Royalties Suit Or Get A Refund
By Dani Kass

Law360 (October 9, 2019, 5:30 PM EDT) -- A California federal judge has granted Tessera the upper hand in a royalty dispute with Toshiba, finding that the Japanese electronics giant must face claims that it dodged payments while also denying a refund request for some royalties it did pay.

U.S. District Judge Beth Freeman on Tuesday worked through summary judgment motions submitted by both sides, largely clearing the way for Tessera Inc.’s suit over a 1999 licensing agreement. That agreement covered integrated circuit technology used in 7,000 Toshiba Corp. products, according to court records.

Xperi Corp. unit Tessera never explicitly indicated in its amended complaint how much it is seeking, and instead only asked for owed royalties plus damages decided at trial. But during a 2017 hearing, Toshiba’s attorney said the ask “dramatically increased” beyond the $100 million Tessera originally sought.

Judge Freeman on Tuesday granted Tessera summary judgment to beat Toshiba’s counterclaims, which requested refunds for certain royalties paid.

Toshiba told Tessera in November 2013 it no longer intended to pay royalties, as its products didn’t require the use of the licensed patents. Additionally, it asked for a refund on royalties it paid dating back to October 2010, saying that’s when the last of the relevant patents expired.

But under Ninth Circuit law, a licensee is only entitled to a refund if the royalties were paid after challenging the validity of a patent, Judge Freeman said. Before the November 2013 letter to Tessera, Toshiba hadn’t challenged the validity of the patents or claimed noninfringement, and in fact made a “conscious business decision” not to challenge the validity, she said. Therefore, the judge said Toshiba can’t get a refund.

Judge Freeman also wasn’t persuaded that the 1999 agreement was rendered unenforceable after two patents expired in 2010, as the agreement still covered other patents that weren’t expired.

This is the second round of summary judgment proceedings in the case. In the first, the court found Toshiba only owes royalties if it infringed a valid, unexpired and licensed patent.

That decision came into play Tuesday when Judge Freeman addressed Toshiba’s motion for summary judgment through which it hoped to escape the unpaid royalty claims. Toshiba had argued there was no evidence of infringement, so Tessera doesn’t deserve royalties. She said this ultimately came down to a question of fact, not suitable for the court to decide at this stage.

She did say Tessera’s claims in the 2015 suit aren’t barred by a four-year statute of limitations, concluding that the clock started when Toshiba refused to pay royalties.

Likewise, she said Toshiba can’t dodge clams that it owes Tessera inflation adjustments.

Toshiba had asked for the right to challenge findings in two audit reports required by the 1999 agreement, and for a ruling that it didn’t breach the agreement’s audit provision by not cooperating with the auditors and not paying royalties based on one of those reports. Judge Freeman said these concerns weren’t fit for resolution on summary judgment.

Toshiba was successful in striking statements from Tessera’s expert reports that contained legal opinions and testimony about intent, motive and state of mind.

She also barred Tessera from offering expert opinions about patent infringement as the company didn’t comply with local rules about practicing patent cases. Tessera had been ordered to identify asserted patents by a certain deadline, which it then failed to do, in violation of those local rules, the judge said.

Attorneys for Tessera and Toshiba declined to comment Wednesday.

The patents-in-suit are U.S. Patent Nos. 5,679,977and 5,852,326.

Tessera is represented by Morgan Chu, Benjamin W. Hattenbach, A. Matthew Ashley and Lisa S. Glasser of Irell & Manella LLP.

Toshiba is represented by G Hopkins Guy III, Michael Hawes, Ali Dhanani, David M. Genender, Theresa Sutton and Sean Y. Lee of Baker Botts LLP.

The case is Tessera Inc. v. Toshiba Corp., case number 5:15-cv-02543, in the U.S. District Court for the Northern District of California.

--Additional reporting by Dorothy Atkins. Editing by Amy Rowe.

[Paullee]

Tessera, Broadcom Enter Deal To Resolve Patent Litigation
Share us on: By Kelly Knaub

Law360, New York (December 19, 2017, 2:46 PM EST) -- Tessera Technologies and Broadcom have reached a deal to resolve Tessera’s pending case at the U.S. International Trade Commission accusing Broadcom of infringing its semiconductor patents, as well as other U.S. and international litigation, Tessera announced Monday.

Tessera Technologies Inc. and some of its affiliates have entered into a multi-year patent license deal with Broadcom Ltd. and some of Broadcom’s related companies under the settlement, Tessera said in a news release.

The deal resolves multiple complaints filed by Tessera that have been pending at the ITC and in Delaware federal court, a complaint filed by Broadcom against Tessera in California federal court accusing Tessera of infringing its patent covering audio processing for wireless systems, two suits filed by Tessera in Germany and one in the Netherlands in May 2016, another suit filed in Germany by Broadcom, and a number of inter partes review proceedings at the U.S. Patent and Trademark Office.

No additional details of the deal were provided.

“We are very pleased to have reached this settlement and license agreement with Broadcom," Jon Kirchner, CEO of Xperi Corp., Tessera’s parent company, said in a statement. “This agreement validates the strength and breadth of our semiconductor portfolio, and provides us with a clear path to unlock the value of our innovations with other companies in the semiconductor industry.”

Tessera’s president, Murali Dharan, said separately that the deal is “a major milestone” for the company’s intellectual property licensing business.

“We look forward to a constructive relationship with Broadcom and thank the Broadcom team for their professional approach to reaching this resolution,” Dharan said.

Tessera, which licenses its technologies to several hundred companies, including Intel Corp. and Micron Technology Inc., filed its complaint at the the ITC in May 2016, alleging that Broadcom had unlawfully imported and sold semiconductor products infringing three of its patents.

The same month, it also accused Broadcom of infringing some of its semiconductor patents in Delaware federal court, prompting Broadcom to ask the Patent Trial and Appeals Board for inter partes review of the patent.

In July, an ITC administrative law judge found that a wide range of Broadcom products imported to the U.S. infringe a Tessera semiconductor patent, recommending standard remedies preventing the company from continuing to do so.

One month later, Broadcom and its subsidiary Avago Technologies General IP Pte. Ltd. asked the ITC to investigate the alleged improper importation of wireless audio systems, ranging from speakers to amplifiers, that it simultaneously accused in California federal court of infringing a patent covering audio processing for wireless systems.

In the California complaint, the companies accused Tessera subsidiary DTS Inc. of infringing Avago’s patent through its “Play-Fi” technology, which streams audio through a wireless network from a device to different audio products, soon including Amazon’s Alexa.

Attorneys for the parties did not respond to a request for comment Tuesday.

Tessera is represented by Robert Haslam, Sturgis Sobin, Michael Plimack, Nitin Subhedar, Christopher Eppich, Laura Muschamp, Dale Rice, Thomas Garten, Daniel Valencia and Matthew Phelps of Covington & Burling LLP.

Broadcom is represented by David E. Sipiora, Josh Pond, Kris Reed, Matthew Meyer, Norris Booth, and Matthew Holohan of Kilpatrick Townsend & Stockton LLP.

The ITC case is In the Matter of Certain Semiconductor Devices, Semiconductor Device Packages and Products Containing Same, investigation number 337-TA-1010, before the U.S. International Trade Commission.

--Additional reporting by Nicole Narea. Editing by Marygrace Murphy.

Update: This story has been updated to include additional counsel for Broadcom.

[Paullee]

TSMC’s Eleventh Hour Court Proceeding Confirms Importance of Tessera’s Patented Technology; Attempts to Circumvent ITC Determination

Business Wire Business WireOctober 16, 2017

SAN JOSE, Calif.--(BUSINESS WIRE)--

Tessera Technologies, Inc. (“Tessera”), a wholly owned subsidiary of Xperi Corporation (“Xperi” or “the Company”), issued a statement today in response to litigation filed by Taiwan Semiconductor Manufacturing Company Limited (“TSMC”), a Taiwanese company, against Tessera and certain of its subsidiaries late in the day on October 13, 2017. TSMC filed an action in the United States District Court for the Northern District of California, expressing its concern that the U.S. International Trade Commission (“ITC”) will adopt the initial determination of Administrative Law Judge (“ALJ”) Sandra Dee Lord and enter an order excluding the import of infringing Broadcom chips manufactured by TSMC, and products of the other respondents containing these chips. TSMC seeks an injunction to prevent Tessera from enforcing its rights in the ITC. TSMC’s request is based on the same patent exhaustion argument that was already fully litigated and rejected by ALJ Lord in the ITC investigation.

“This appears to be an eleventh-hour attempt by TSMC to circumvent the jurisdiction and lawful authority of the ITC, which protects U.S. industries against the importation of foreign infringing products,” said Paul Davis, Xperi’s senior vice president and general counsel. “But ALJ Lord already considered the argument TSMC raises, and concluded that TSMC does not have the right to sell products that infringe our ‘946 patent. We are confident that the District Court will reject TSMC’s belated attempt to end-run the ITC and re-litigate this issue.”

On June 30, 2017, ALJ Lord issued an initial determination finding that Broadcom and the other respondents broadly infringe U.S. Patent No. 6,849,946 (the “‘946 patent”). The ‘946 patent has twice been found to be valid – once by ALJ Lord and again by the U.S. Patent Office Patent Trial and Appeal Board when it denied a petition for inter partes review against the patent. ALJ Lord’s decision is now under review by the ITC Commissioners, whose final determination is expected by December 1, 2017.

“TSMC’s filing confirms the importance and breadth of our patented technology,” Davis added. “TSMC states in its complaint that an exclusion order would impact more than a half-billion U.S. dollars annually in chips/components, to over 300 Broadcom customers, as well as billions of dollars in downstream products built on the infringing Broadcom chips. We continue to be open to negotiating a license agreement with Broadcom that fairly compensates us for its use of this valuable intellectual property.”

[Paullee]

Invensas Gives Update on German Legal Proceedings Against Broadcom

Business Wire Business WireOctober 11, 2017

SAN JOSE, Calif.--(BUSINESS WIRE)--

Invensas Corporation (“Invensas”), a subsidiary of Xperi Corporation (“Xperi” or “the Company”), issued a statement today giving an update on a nullity proceeding filed by Avago Technologies GmbH against a patent at issue in Invensas’ legal proceedings against Broadcom Ltd. (“Broadcom”) and certain of its affiliates and distributors in Germany. On October 5, 2017, the German Federal Patent Court issued a notice giving its tentative view that the German part of Invensas’ EP 1 186 034 B1 (“ ‘034 Patent”), a patent Broadcom has been adjudicated to infringe, may be invalid for various reasons. The Court made it clear that this was not its final decision, but instead was being issued “n preparation for the oral hearing on 25 January 2018, … with no intention of anticipating the outcome of the oral hearing.” The Court’s statement is designed to guide the parties and focus their arguments in advance of the oral hearing. Invensas will make a further submission in response to the Court’s notice on December 6, 2017.

“We think the Court's reasoning in its preliminary statement is flawed, and we look forward to having the opportunity to provide further briefing and arguments at the hearing in January,” said Jon Kirchner, the Company’s Chief Executive Officer. According to common German legal practice, in response to the preliminary statement Invensas has voluntarily agreed to abstain, at least temporarily, from enforcing the Regional Court of Mannheim’s judgments of infringement of the ‘034 Patent pending the nullity hearing. “We continue to believe the patent is valid and will be upheld at the hearing.”

“The Court’s preliminary statement is not final, and has no impact on our ITC investigation against Broadcom,” Mr. Kirchner added, in reference to an Administrative Law Judge’s initial determination that Broadcom broadly infringes another one of Invensas’ patents across all of Broadcom’s significant product lines. “The ITC proceedings are entirely separate and the ITC’s final determination is scheduled to be issued on December 1, 2017, well before the German nullity case is ultimately decided. Therefore, we view the ITC proceedings as the primary catalyst in our discussions with Broadcom.”

About Xperi Corporation

Xperi Corporation (XPER) and its brands, DTS, FotoNation, HD Radio, Invensas and Tessera, are dedicated to creating innovative technology solutions that enable extraordinary experiences for people around the world. Xperi’s solutions are licensed by hundreds of leading global partners and have shipped in billions of products in areas including premium audio, broadcast, automotive, computational imaging, computer vision, mobile computing and communications, memory, data storage, and 3D semiconductor interconnect and packaging. For more information, please call 408-321-6000 or visit www.xperi.com.

[Paullee]

Samsung Accused Of Infringing Tessera Chip Patents At ITC
Share us on: By Nicole Narea

Law360, New York (October 3, 2017, 8:39 PM EDT) -- The U.S. International Trade Commission announced Tuesday that Tessera Advanced Technologies Inc. requested an investigation of Samsung Electronics Co. Ltd.'s alleged infringement of two semiconductor patents, as well as the exclusion of infringing products and a prohibition on related commercial activity.

Bringing claims Thursday under the Tariff Act, Tessera, a subsidiary of tech giant Xperi Corp., asked the ITC to exclude infringing wafer-level packaged semiconductor devices and products containing them, such as the power management IC chips used in Samsung's flagship Galaxy and Note smartphones, as well as issue cease-and-desist orders barring commercial activity linked to those infringing products.

The commission consequently invited members of the public to file comments on the proceedings, in particular as they related to the public interest, products that could replace the infringing products if excluded and whether competitors had the ability to meet the volume of demand for such products.

"[Tessera] believe[s] that these exemplary Samsung products are representative of many other Samsung products imported, sold for importation, and/or sold in the United States after importation by Samsung that feature the same or substantially similar infringing functionality as the exemplary accused products," the complaint states.

The patents relate to semiconductor wafer-level packaging, or WLP, which is the process of packaging semiconductor chips before a wafer is divided into separate chips, reducing the package size. WLP will "enable the next generation of semiconductor devices" and "driv[e] the modern computing, telecommunications and information revolution," according to the complaint.

The patents specifically cover "improvement in chip reliability" by way of WLP, Tessera said.

Tessera named Samsung's phones in its Thursday complaint, but acknowledged that other cellular phones, tablets, notebooks and cameras might be found to infringe the patents during the discovery phase of the investigation. Tessera alleged that Samsung knew of its patents since at least May 2016, when Tessera presented its WLP technology to Samsung and explained how the company was infringing them.

"By continuing its actions, Samsung has had the specific intent to induct, or was willfully blind of inducing infringement of the patent," the complaint states.

Tessera claimed that it had established a domestic industry around the patents as evidenced by its hefty investment in dedicated manufacturing equipment, personnel, research, development, application engineering and licensing. Its licensee Micron Technology Inc. invested $1.62 billion in research and development in 2016, in part dedicated to the technology covered by the patents, Tessera alleged.

In May 2016, Tessera also accused Broadcom Corp. of infringing one of the patents at issue in Delaware federal court, prompting Broadcom to ask the Patent Trial and Appeals Board for inter partes review of the patent. Tessera further accused Samsung of infringing both patents in New Jersey federal court at the same time that it filed its ITC complaint.

Tessera additionally prevailed in defending a different semiconductor patent at the ITC against Broadcom when an administrative law judge found in July that a wide range of Broadcom products imported to the U.S. infringed, recommending standard remedies preventing the company from continuing to do so.

The patents in the investigation are U.S. Patent Numbers 6,954,001 and 6,784,557.

Counsel for Tessera and a representative for Samsung did not immediately respond to requests for comment Tuesday.

Tessera is represented by Matthew Moore, Maximilian Grant, Bert Reiser, Charles Sanders and Michael David of Latham & Watkins LLP.

Counsel information for Samsung was not available Tuesday.

The case is In the Matter of Certain Wafer-Level Packaging Semiconductor Devices and Products Containing the Same (Including Cellular Phones, Tablets, Laptops and Notebooks) and Components Thereof, case number 337-3262, in the U.S. International Trade Commission.

--Editing by Katherine Rautenberg

[Paullee]

Item 8.01 Other Events.
On August 9, 2017, the U.S. International Trade Commission (the “Commission”), issued a notice extending by approximately one month the dates for the Commission to determine whether to review the final initial determination (“ID”) and the target date for completion of the investigation in In Re Certain Semiconductor Devices, Semiconductor Device Packages, And Products Containing Same , ITC Investigation No. 337-TA-1010, filed by Tessera Technologies, Inc., Tessera, Inc., and Invensas Corporation (collectively, “Tessera”) against Broadcom Limited, Broadcom Corporation (“Broadcom”), ARRIS International plc, ARRIS Group, Inc., ARRIS Technology, Inc., ARRIS Enterprises LLC, ARRIS Solutions, Inc., Pace Americas, LLC, Pace USA LLC, Pace Ltd., ASUSTeK Computer Inc., ASUS Computer International, HTC Corporation, HTC America, Inc., NETGEAR, Inc., Arista Networks, Inc. Comcast Cable Communications, LLC, Comcast Cable Communications Management, LLC, Comcast Business Communications, LLC, Technicolor S.A., Technicolor USA, Inc., and Technicolor Connected Home USA LLC (collectively, “Respondents”). Tessera Technologies, Inc., Tessera, Inc., and Invensas Corporation are wholly-owned subsidiaries of Xperi Corporation (the “Company”).
The new deadline for the Commission to determine whether to review the final initial determination is September 29, 2017, and the new target date for completion of the investigation is December 1, 2017.
The Company does not believe the extension has any bearing on the merits of the investigation. The Commission indicated that it required additional time to consider the petitions for review.

[Paullee]

Key Tessera Patent Infringed across Broadcom Product Lines

Business WireJuly 5, 2017

SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. and certain of its subsidiaries (collectively, “Tessera,” a subsidiary of Xperi Corporation (XPER) (the “Company”)), confirmed more details today on its significant win against Broadcom Corporation (“Broadcom”) and certain of its customers in the U.S. International Trade Commission (“ITC”). Administrative Law Judge (“ALJ”) Sandra Dee Lord issued a notice of initial determination (“ID”) on June 30, 2017, and the Company’s counsel has now received the full ID and confirmed the broad scope of Tessera’s victory.
“We are very pleased with this result, which our counsel has confirmed is a complete victory on the ‘946 Patent,” said Jon Kirchner, the Company’s CEO, referring to U.S. Patent No. 6,849,946 (the “‘946 Patent”). “The ALJ found that the ‘946 Patent is infringed, valid, and has a domestic industry in the United States. This is a key patent on a fundamental manufacturing process technology that is not only very broadly infringed across all of Broadcom’s significant product lines, but, we believe, is used by many others in the semiconductor industry.”
The infringing Broadcom products are semiconductor chips that fall into one of seven technology nodes: 16nm, 20nm, 28nm, 45/40nm, 65/60/55nm, 90nm, and 130nm. The ‘946 Patent covers the largest number of Broadcom products of all three patents at issue in the ITC investigation.
This is the second time that the ‘946 Patent’s validity has been confirmed in the past four months – first by the Patent Trial and Appeals Board when it denied Broadcom’s petition for Inter Partes Review (“IPR”) in March, and now by the ITC. This patent is also at issue in the Company’s parallel lawsuits against Broadcom and Avago in Delaware federal district court, where the Company is seeking damages.
The ALJ also recommended that the ITC issue its standard remedies that would bar Broadcom and its customers Arista Networks, ARRIS/Pace, ASUSTeK/ASUS, Comcast Cable, HTC, NETGEAR, and Technicolor from importing, selling, and engaging in a variety of related domestic activity in connection with infringing imported products. The infringing products include a very wide array of Broadcom chips and the products that incorporate them, such as set-top boxes, routers, modems, gateways, cell phones and other mobile devices, as well as Ethernet switches and other chips designed for data centers, enterprises, and cloud computing servers. The case is now subject to review by the ITC Commissioners.
“We are also pleased by the ALJ’s ruling that the ‘136 Patent is infringed and valid,” Kirchner added, referring to U.S. Patent No. 6,133,136 (the “‘136 Patent”). “This is the second time this patented technology has been found to be infringed by Broadcom – first by a court in Germany and now by the ITC. And now the validity of the patent has also been confirmed. Although the ALJ found that the ‘136 lacked a domestic industry, that is a special requirement unique to the ITC that does not apply in federal district court or in Europe, where the Company has parallel cases against Broadcom.”
“Broadcom has now been found to infringe multiple patents in multiple jurisdictions – two of our U.S. patents and one of our E.U. patents. The ITC decision is our third major favorable decision against Broadcom in the past four months, along with the German infringement ruling and the IPR decision on the ‘946 Patent. We remain interested in negotiating a fair and reasonable license with Broadcom, but absent a satisfactory resolution, we will continue to defend our IP rights and enforce these decisions to the fullest extent of the law,” Kirchner concluded.
About Xperi Corporation's Semiconductor and IP Licensing Business
Tessera and Invensas are subsidiaries of Xperi Corporation. Over the past 27 years, research and development at both Tessera and Invensas has led to significant innovations in semiconductor packaging technology, which has been widely licensed and is found in billions of electronic devices globally. Invensas develops next-generation semiconductor packaging and interconnect technologies for memory, mobile, computing and automotive applications. Through collaborative partnerships with world-class manufacturing companies and high-volume equipment and materials suppliers, Invensas licenses these technology solutions to original equipment manufacturers, original design manufacturers, integrated device manufacturers, fabless device suppliers, foundries and outsourced assembly and test providers, and supports the technology transfer at customer-designated sites. Additionally, Invensas' low temperature wafer bonding technologies target the image sensor, DRAM, MEMS, RF and 2.5D logic markets.

[Paullee]

Tessera Receives Favorable Notice of Initial Determination in Broadcom ITC Investigation

Business WireJune 30, 2017






SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. and certain of its subsidiaries (collectively, “Tessera”), announced today that Administrative Law Judge Sandra Dee Lord of the U.S. International Trade Commission ("ITC"), issued a Notice of Initial Determination (“ID”) in Certain Semiconductor Devices, Semiconductor Device Packages, And Products Containing Same, Investigation No. 337-TA-1010. Tessera is a subsidiary of Xperi Corporation (XPER) (the “Company”).
The notice includes only a brief summary of the ID’s conclusions. According to the notice, ALJ Lord found a violation of Section 337 of the Tariff Act due to infringement of U.S. Patent No. 6,849,946 by Broadcom and its named customers. She found that U.S. Patent No. 6,133,136 was infringed and valid, but found no violation due to lack of domestic industry. She found no violation with respect to U.S. Patent No. 6,856,007.
The parties and their counsel have not yet received the full ID, which is subject to confidentiality restrictions. Thus, no further details on the substance of the decision, including details about the scope of the ALJ’s infringement finding, are available at this time. After the Company’s counsel receives the full ID, which it anticipates to be within the next few days, the Company will determine whether further comment on the decision is appropriate.
The ID is now subject to review by the Commissioners at the ITC. Any remedies would not issue until the completion of the investigation, which at this time is scheduled for October 30, 2017.
About Xperi Corporation's Semiconductor and IP Licensing Business
Tessera and Invensas are subsidiaries of Xperi Corporation. Over the past 27 years, research and development at both Tessera and Invensas has led to significant innovations in semiconductor packaging technology, which has been widely licensed and is found in billions of electronic devices globally. Invensas develops next-generation semiconductor packaging and interconnect technologies for memory, mobile, computing and automotive applications. Through collaborative partnerships with world-class manufacturing companies and high-volume equipment and materials suppliers, Invensas licenses these technology solutions to original equipment manufacturers, original design manufacturers, integrated device manufacturers, fabless device suppliers, foundries and outsourced assembly and test providers, and supports the technology transfer at customer-designated sites. Additionally, Invensas' low temperature wafer bonding technologies target the image sensor, DRAM, MEMS, RF and 2.5D logic markets.

[Paullee]

German Court Denies Broadcom Bid to Stay Invensas Patent Infringement Injunction

Business WireJune 2, 2017






SAN JOSE, Calif.--(BUSINESS WIRE)--
Invensas Corporation ("Invensas" or "the Company") announced today that a German appellate court denied Broadcom Ltd. and Broadcom Corp.’s (collectively, “Broadcom”) motion to stay enforcement of a patent infringement judgment that a German district court recently entered against Broadcom. Invensas is a subsidiary of Xperi Corporation (XPER).
The appellate court’s ruling allows the Company to begin enforcing the district court’s judgment, which enjoined Broadcom and the other defendants from offering, putting on the market, using, or importing (or possessing for such reasons) the infringing products in Germany. The judgment also requires Broadcom to recall infringing products from the German market, to destroy or have destroyed infringing products in their possession in Germany, and to provide an accounting of their infringing activities. The patented technology relates to an interconnect structure for use in flip-chip semiconductor products. The enjoined products include Broadcom chips used in consumer products such as cell phones and other mobile devices, set-top boxes, routers, modems, and gateways, as well as Ethernet switches and other chips designed for data centers, enterprises, and cloud computing servers.
“We are very pleased with the appellate court’s ruling and we intend to begin taking steps to enforce the judgment, including the provisions enjoining Broadcom from selling or distributing the infringing chips destined for the German market, and requiring that Broadcom recall and destroy infringing chips,” said Paul Davis, the Company’s senior vice president and general counsel. “Additionally, we intend to notify certain Broadcom customers, suppliers and distributors of the court’s judgment over the next two weeks to ensure that the infringing products are not shipped into the German market.”
Broadcom filed a motion seeking to increase the bonds that Invensas posted to make the judgment enforceable to at least €505 million. The appellate court has not yet ruled on the bond motion and the Company anticipates that it will be several months before the appellate court holds a hearing and rules on the motion. The judgment is enforceable while the bond motion is pending.
The parties are involved in several parallel proceedings involving the patent-in-suit. Broadcom’s affiliate Avago Technologies GmbH filed a nullity proceeding against the patent-in-suit with the German Federal Patent Court. The Federal Patent Court may issue a preliminary ruling in the Fall of 2017, and a hearing is scheduled for January 2018. Broadcom also appealed the substantive ruling of whether it infringes Invensas’ patent. The Company expects that issue to be heard and decided sometime in 2018. In addition, the U.S. counterpart to the patent-in-suit is at issue in proceedings filed by the Company and its affiliates Tessera Technologies, Inc., Tessera, Inc., and Tessera Advanced Technologies, Inc. against certain Broadcom affiliates and customers in the U.S. International Trade Commission and in the U.S. District Court for the District of Delaware. The Dutch designation of the same European patent is also at issue in parallel proceedings in the Netherlands. The ITC’s initial determination is due on or before June 26, 2017, and the Dutch trial is scheduled for November 3, 2017.

[Paullee]

Tessera’s $100M Toshiba Royalty Row Lacks IP Claims: Judge

By Dorothy Atkins

Law360, San Jose (February 23, 2017, 7:15 PM EST) -- Tessera Technologies sought Thursday to appeal an early ruling over claims Toshiba Corp. owes more than $100 million in royalties for using its integrated circuit technology in 7,000 products, facing a skeptical California federal judge who noted its “garden variety” contract suit might have been stronger with patent infringement claims.

U.S. District Judge Beth Freeman said at the start of a hearing in San Jose on Tessera's motion for default judgment that if she were to grant Tessera’s request, she would be essentially sending one interpretation of one element of a 1999 licensing agreement between Toshiba and Tessera to the Ninth Circuit “piecemeal.” It wasn't an appropriate time to issue an appealable final judgment in light of the fact Toshiba's motion for summary judgment was pending, she said.

Judge Freeman was also critical of Tessera's suit, noting that the licensing agreement involves 46 patents across thousands of products. Had Tessera alleged patent infringement, its attorneys would have had to "dance awfully fast" before the jury to prove its case, which "we could have all wanted to see,” she said. But without an infringement contention, the case might not be as strong, she said.

“What you have now, is a garden variety breach of contract case here absence evidence of infringement,” Judge Freeman said.

Tessera filed the suit against Toshiba in the Santa Clara County Superior Court in May 2015, and it was later removed to federal court. The suit alleged that Toshiba failed to pay Tessera royalties on its patented integrated circuit technology — called F-µBGA packages and marketed as the “Tessera Compliant Chip” — which Tessera licensed to Toshiba in 1999.

Under the licensing agreement, Toshiba agreed to let a third party regularly audit its records and determine royalties owed to Tessera. But in 2011, the suit claims Toshiba refused to give the auditor access to its data to perform the audit, and in November 2013 Toshiba sent Tessera a letter indicating that it would no longer pay the company royalties. Last year, Toshiba sought to terminate the contract, claiming its products don’t use Tessera’s patented technology, according to court documents.

The complaint asserted breach of contract claims and breach of good faith dealing claims. It also asked the court to declare that Toshiba is required to pay royalties on Tessera's F-µBGA packages, that it’s required to be audited and that it never terminated its contract with Tessera.

In July, Tessera moved for partial summary judgment on the declaratory relief claims, arguing that the royalties owed under the agreement were based on the product and not patent infringement.

Meanwhile, Toshiba argued that the license agreement was infringement-based and that the patents at issue expired in September 2010. Toshiba said that Tessera actually owes it a refund for its overpayments, because Toshiba continued to pay Tessera through 2013. Tessera’s continued demands for royalty payments were “dishonest, harassing, abusive and based upon a falsification of facts,” Toshiba said.

In November, Judge Freeman sided with Toshiba, finding that the agreement was product-based.

On Thursday, Tessera urged Judge Freeman to issue a final order on the declaratory relief claim related to the issue, so it could appeal the interpretation of the contract to the Ninth Circuit. Tessera attorney Matt Ashley of Irell & Manella LLP argued that his request for default judgment wasn’t premature and that the claim at issue is “pivotal” to the outcome of the case. The declaratory relief claim determines if the licensing agreement calculates owed royalties with or without proof of patent infringement, he said.

“It’s a fundamental issue that permeates other facts in the case,” Ashley said.

Ashley also conceded that the breach of contract suit was “much less complex” than if Tessera had pursued patent infringement claims. Still, Ashley argued that it was not beyond Judge Freeman’s discretion to rule on the claim, and that if she decided the issue, both parties would avoid incurring costs associated with fighting Toshiba’s pending motion for summary judgment.

Meanwhile, Toshiba attorney G. Hopkins Guy III of Baker Botts LLP argued that the judge should at least wait until she rules on Toshiba’s motion for summary judgment before she decides Tessera’s default judgment motion. That way, she won’t be sending rulings to the appellate court piecemeal, he said.

At the end of the hearing, Judge Freeman said she would take the arguments under submission, but said that Ashley had convinced her to give the default judgment motion more serious consideration.

Tessera never explicitly indicated in its amended complaint how much it is seeking, and instead only asked for owed royalties plus damages decided at trial. In court documents, Toshiba accused Tessera of trying to "obfuscate" the amount in dispute as a failed attempt at keeping the case in state court. But during the hearing Thursday, Guy said that the amount had “dramatically increased” beyond $100 million that Tessera originally sought.

Tessera is represented by Matt Ashley, Morgan Chu, Benjamin W. Hattenbach, Lisa S. Glasser and Ellisen S. Turner of Irell & Manella LLP.

Toshiba is represented by G. Hopkins Guy III, Jeffrey Liang, Amy K. Liang, Tina Jing Yang, Fangzhou “Fred” Qiu, Michael Hawes, Scott Partridge, Ali Dhanani and David M. Genender of Baker Botts LLP and Lawrence J. Siskind and Anna P. Chang of Siskind Boyd LLP.

The case is Tessera Inc. v. Toshiba Corp., case number 5:15-cv-02543, in the U.S. District Court for the Northern District of California.

--Editing by Bruce Goldman.


All Content © 2003-2017, Portfolio Media, Inc.

[Paullee]

Anybody home ??????????

Is Nuke John dead?

[stockstuffer]

keep an eye on ENIP. similar sector, ex TSRA executive on board.

[stocktrademan]

$TSRA DD Notes ~ http://www.ddnotesmaker.com/TSRA

bullish

$TSRA recent news/filings

## source: finance.yahoo.com

Tue, 02 Dec 2014 12:14:25 GMT ~ Tessera Technologies Closes Transaction with O-Film

[at noodls] - Company Updates Fourth Quarter Revenue Guidance to $58-60 Million SAN JOSE, Calif.--(BUSINESS WIRE)-- Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company") announced ...

read full: http://www.noodls.com/view/EF91AB0BA5FDE39E44439E262AB613C99B5B53F9
*********************************************************

Tue, 02 Dec 2014 12:00:00 GMT ~ Tessera Technologies Closes Transaction with O-Film

[Business Wire] - Tessera Technologies, Inc. announced that the Company and its wholly-owned subsidiary DigitalOptics Corporation closed the previously announced transaction with Shenzhen O-Film Tech Co., LTD.

read full: http://finance.yahoo.com/news/tessera-technologies-closes-transaction-o-120000418.html
*********************************************************

Wed, 26 Nov 2014 12:13:43 GMT ~ Appellate Court Upholds Tessera Arbitration Award Against Amkor

[at noodls] - SAN JOSE, Calif.--(BUSINESS WIRE)-- Tessera Technologies, Inc. (NASDAQ:TSRA) ("Tessera" or the "Company") announced today that a California state appellate court affirmed a lower court ...

read full: http://www.noodls.com/view/F00B8C0F1EC41AE3C9F2718A39F1B755E59533ED
*********************************************************

Wed, 26 Nov 2014 12:00:00 GMT ~ Appellate Court Upholds Tessera Arbitration Award Against Amkor

[Business Wire] - Tessera Technologies, Inc. announced today that a California state appellate court affirmed a lower court ruling denying a petition by Amkor Technology, Inc.

read full: http://finance.yahoo.com/news/appellate-court-upholds-tessera-arbitration-120000502.html
*********************************************************

Tue, 25 Nov 2014 20:56:00 GMT ~ Stocks Finish Little Changed; Century Aluminum Breaks Out


read full: http://news.investors.com/112514-727977-stocks-close-near-break-even-in-dull-session.htm?ven=yahoocp&src=aurlled&ven=yahoo
*********************************************************


$TSRA charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com


$TSRA company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/TSRA/company-info
Ticker: $TSRA
OTC Market Place: Not Available
CIK code: 0001261694
Company name: Tessera Technologies, Inc.
Incorporated In: DE, USA


$TSRA share structure

## source: otcmarkets.com

Market Value: $1,815,825,885 a/o Dec 01, 2014
Shares Outstanding: 52,770,296 a/o Oct 24, 2014
Float: Not Available
Authorized Shares: Not Available
Par Value: 0.001
$TSRA extra dd links

Company name: Tessera Technologies, Inc.
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=TSRA+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=TSRA+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=TSRA+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/news - http://finance.yahoo.com/q/h?s=TSRA+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/TSRA/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=TSRA+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/TSRA
DTCC (dtcc.com): http://search2.dtcc.com/?q=Tessera+Technologies%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Tessera+Technologies%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Tessera+Technologies%2C+Inc.&x=0&y=0

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/TSRA
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001261694&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=TSRA&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=TSRA
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=TSRA+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=TSRA+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=TSRA
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=TSRA
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=TSRA+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/TSRA/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=TSRA+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/TSRA.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=TSRA
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/TSRA/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/TSRA/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/TSRA
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/TSRA
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/TSRA:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=TSRA
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=TSRA



$TSRA DD Notes ~ http://www.ddnotesmaker.com/TSRA

[shipbuilder]

Good squeeze candidate for coming week. Action seen in Fridays options market. Target 25.5

[buysidenotes]

One of the big winners of failed patent reform. Get the rest here: http://buysidenotes.com/2014/05/28/the-winners-of-failed-patent-reform/

[Paullee]

Tessera, Sony Settle Semiconductor Patent License Suit

By Dan Prochilo
Law360, New York (January 07, 2014, 6:18 PM ET) -- Sony Electronics Inc. and Tessera Inc. have settled a suit alleging Sony failed to renew a license for semiconductor packaging patents and continued exploiting the inventions they described in Sony's products, according to an order dismissing the case in Delaware federal court Monday.

U.S. District Judge Renee Marie Bumb tossed the litigation after the two companies cut a deal that also called for Sony to drop the claims it had filed against the patent owner, and for both parties to pay their own attorneys' fees and litigation costs.

The terms of the accord were not disclosed in the order, and attorneys and company representatives for Sony and Tessera did not respond to messages seeking comment Tuesday.

The October 2010 suit accused the Japan-based electronics maker of infringing U.S. Patent No. 6,885,106, which Sony had at one point taken a license for from Tessera.

Sony and San Jose, Calif.-based Tessera struck their licensing deal in October 1997, while a predecessor of Japan-based Renesas Electronics Corp. — another defendant in the case — entered into a license agreement with Tessera in June 2004. Both defendants elected to let those agreements expire the same month the suit was filed, after Tessera had tried for months to negotiate an amicable solution with the alleged infringers in vain, the suit said.

The two companies elected to continue using the patented technology illegally, making and selling many of the same products for which they had formerly paid royalties to Tessera, but without permission and without paying up, according to the complaint.

The patent owner sought compensatory damages of no less than a reasonable royalty, treble damages for willful infringement, and other relief.

In October 2012, Sony sought to stay the case while the U.S. Patent and Trademark Office's Patent Trial and Appeal Board re-examined the validity of both the original patent-in-suit, titled “Stacked Microelectronic Assemblies and Methods of Making Same,” and U.S. Patent No. 6,054,337, a method patent for a process of making a package of semiconductor chips. Both reviews were based on challenges brought under the America Invents Act.

It was unclear whether those reviews had been completed or were still ongoing when Sony and Tessera reached their agreement.

Tessera also launched a May 2011 suit against Sony in Santa Clara County Superior Court in California based on the alleged breach of an October 1997 licensing contract, through which Sony licensed Tessera's portfolio of hundreds of patents covering semiconductors and microelectronics for next-generation electronic devices.

That case, accusing Sony of violating a patent license and failing to pay $92.6 million in royalties, was resolved in late October, through a settlement announced on the eve of a trial. The terms of that deal were not immediately disclosed.

The patent-in-suit is U.S. Patent Number 6,885,106, and the inter partes review is for U.S. Patent Number 6,054,337.

Sony is represented by Rodger Smith II of Morris Nichols Arsht & Tunnell LLP and Matthew Lowrie and Aaron Moore of Foley & Lardner LLP.

Tessera is represented by Philip Rovner of Potter Anderson & Corroon LLP and Morgan Chu, Ben Hattenbach, Melissa McCormick and Lisa Sharrock Glasser of Irell & Manella LLP.

The case is Tessera Inc. v. Sony Electronics Inc. et al., case number 1:10-cv-00838, in the U.S. District Court for the District of Delaware.

--Additional reporting by Beth Winegarner. Editing by Edrienne Su.

All Content © 2003-2014, Portfolio Media, Inc.

[Paullee]

Tessera, Sony Reach 11th-Hour Deal In $93M Royalties Fight

Share us on:TwitterFacebookLinkedInBy Beth Winegarner 0 Comments

Law360, San Francisco (October 28, 2013, 6:46 PM ET) -- Tessera Inc. and Sony Corp. reached an eleventh-hour settlement Monday over claims that the Japanese giant violated a patent license with Tessera covering semiconductor technology between the two and failed to pay $92.6 million in royalties, the companies announced on the eve of trial.

The terms of the deal remained confidential Monday, although Tessera officials said in a statement that they would provide more details once the companies sign off on the settlement.

Attorneys for Tessera declined to comment further on the settlement Monday. Attorneys for Sony did not respond to requests for comment.

The case was launched in Santa Clara County Superior Court in May 2011, when Tessera's parent company, Tessera Technologies Inc., went after Sony for allegedly breaching an October 1997 contract in which Sony licensed Tessera's portfolio of hundreds of patents, as well as other technology. Sony removed the case to California federal court that September, court records show.

Sony is one of several companies — including Intel, Texas Instruments and SK Hynix — to license Tessera's technology, which includes semiconductors and microelectronics for “next-generation” electronic devices. Under those license agreements, Tessera has the right to conduct audits related to the amounts of money its licensees might owe. A 2010 audit conducted by third-party auditor Connor Group was greeted with resistance on Sony's part, according to a pretrial statement.

“Sony refused to cooperate with the auditors’ requests for information. ... Despite Sony’s breach of its obligation to cooperate, the auditors ultimately determined that Sony owed Tessera millions of dollars in unpaid royalties for royalty-bearing products made by or for Sony under the agreement,” Tessera said. Once those sums were determined, Sony refused to pay, court documents said.

But after reverse-engineering a number of Sony products, Tessera discovered that Sony was selling hundreds of items that it had never reported to Tessera, but for which Sony was required to pay Tessera royalties under their contract, court documents said.

Sony, however, said in pretrial statements that Tessera had changed direction in recent years, converting itself from a semiconductor technology company to one that would “eviscerate Tessera’s R&D and rely instead on hyper-aggressive patent troll-style litigation to build revenues,” allegedly quoting one of Tessera's leaders.

Following that strategy, Tessera sued Sony over products that weren't subject to the royalties part of the companies' agreement, Sony argued. Tessera only required Sony to pay royalties on chips made for or by Sony, but the technology dug up by the Connor Group didn't fit into those categories, Sony said in court documents.

In the trial, Tessera would have sought monetary damages equaling the royalties Sony allegedly owed but hadn't paid; monetary damages resulting from Sony's other alleged breaches, including not cooperating with the audit provision; and damages associated with Sony's breach of the covenant of good faith and fair dealing, according to pretrial statements.

Tessera Inc. is represented by Morgan Chu, Melissa R. McCormick, Benjamin W. Hattenbach and Lisa S. Glasser at Irell & Manella.

Sony Corp. is represented by Eileen R. Ridley, Matthew B. Lowrie, Aaron W. Moore, Lucas I. Silva and Ruben J. Rodrigues at Foley & Lardner LLP.

The case is Tessera, Inc. v. Sony Corp., case number 5:11-cv-04399, in the U.S. District Court for the Northern District of California.

--Additional reporting by Jacqueline Bell. Editing by Jeremy Barker

[investora2z]

The upcoming results will be the next trigger for the stock. The management guidance for revenues is $35-38 million which indicates that the revenues are likely to fall on a yoy basis. The sale of some Micro-optics assets to FLIR will yield an $15 million. Even in the last quarter the revenues had declined significantly on a yoy basis. Over the years, the revenues have declined, and the losses have increased. Though the digital optics segment is primarily responsible for the operating losses, even the IP segment has not performed that well. The revenues have declined and the profits have also come down. The overall market for monetizing IPRs has done well recently, and several companies have begun to assert their proprietary or acquired patent rights. Spherix (SPEX) recently acquired hundreds of patents and has already filed lawsuits against big companies to enforce its rights. Tessera's bottom-line has been hit by litigation, restructuring and goodwill impairment expenses. Even the R&D expenses, mainly compensation to personnel, have been on the rise. However, things may improve after the spin-off of the manufacturing part of the digital optics segment is complete. This is because a major portion of the operating expenses are attributable to this loss making segment. The exact impact of the expected spin-off will be known over time, and the future numbers will be better if it yields the expected results. Meanwhile, the stock has fallen over the last few months. Despite the correction it is still up 33% over the last 52 weeks. It needs to rebound and cross $20 convincingly so that the uptrend can resume. Ultimately, the upward movement will depend on the financial performance. The spin off may reduce the expenses, but the company needs to find ways to bolster the top line. The god part is that the company has a good amount of cash, and has zero debt.

[someconcerns]

NJ,

So, do you see them becoming a NPE? Do you foresee them just licensing the IP they have, co-oping with an entity like MARA by assigning them the IP, or taking the MARA route themselves?

Steve

[NukeJohn]

I think TSRA new management doesn't want to be in the manufacturing business.

Just thought I'd post the news below and ask for your take on what this portends for TSRA and your current assessment of TSRA.

They want to be in the patent licensing business only, both in microelectronics and in digital optics. So, IMHO, they will try to license their MEMS IP and get others to bring out the actual MEMS camera products.

FWIW, I think TSRA is undervalued at current levels, especially if the MEMS technology really works and can be manufactured cost effectively. But, it will probably take a quarter or two change the course and to start seeing significant profits.

JMHO,

NJ

[someconcerns]

Hi NJ,
Long time no talk. Just thought I'd post the news below and ask for your take on what this portends for TSRA and your current assessment of TSRA.
Steve




"Tessera Technologies Sells Micro-Optics Assets to FLIR
by Business Wire via The Motley Fool Aug 12th 2013 7:39AM
Updated Aug 12th 2013 7:44AM

Tessera Technologies Sells Micro-Optics Assets to FLIR

SAN JOSE, Calif.--(BUSINESS WIRE)-- Tessera Technologies, Inc. (NAS: TSRA) (the "Company" or "Tessera") announced today that FLIR Systems, Inc. ("FLIR") has acquired a significant portion of the assets of Tessera's Micro-Optics business based in Charlotte, North Carolina. Total consideration paid by FLIR was approximately $15 million.

"This transaction is one of the substantive structural changes we announced we would make in the second half of 2013 as we continue to refine our focus on our differentiated MEMS-related technologies," stated Thomas Lacey, interim CEO of Tessera Technologies, Inc. "I would like to thank the Micro-Optics employees for their contributions and efforts and believe this transaction is the right step forward for the future of that business."

Discontinued Operations

In the fourth quarter of 2012, the Company announced that its Micro-Optics business in Charlotte, North Carolina was no longer part of its long-term strategy, and that it was exploring strategic alternatives for this business. In the second quarter of 2013, the Company actively pursued a sale of this business and started classifying the business as discontinued operations."

[NukeJohn]

Disappointing Quarter for Tessera on earnings, but the big question that remains is whether or not the MEMS technology can be widely licensed. It appears Tessera is not going to be in the MEMS manufacturing business as they are placing their Zhuhai, China and Charlotte, NC facilities in the category of "discontinued operations".

Maybe the new management just decided it is best to license MEMS only, and not be in the manufacturing side of the business...but the question that remains is "were there manufacturing issues with MEMS that could not be solved?"

The IP licensing revenue drop was expected (Micron still hasn't re-signed a license) and the Hynix deal really hasn't kicked in yet. But the drop was a still a little more than I expected. The company is still flush with cash, so they have a big enough war chest to protect their IP if they have to initiate new litigation.

I wasn't able to listen to the call this morning, so maybe the MEMS issue and new litigation to protect their IP was addressed.

JMHO,

NJ

[NukeJohn]

Well...I saw this one coming

http://ih.advfn.com/p.php?pid=nmona&article=58520761

Barney Cassady is out. Now that Starboard is in control, they will likely continue to streamline the company and milk the "cash cow" patents. The big question is what the heck is going on with MEMS?

JMHO,

NJ

[NukeJohn]

It Appears Starboard Won the Battle for control of the Board.

Overall, I think this will be good for investors, especially in the short term. The secrecy of the previous management (going so far as to say they would no longer give guidance), seems to have been their downfall, especially when combined with promises surrounding the potential of Digital Optics that never seemed to materialize.

IMHO, I think the new BOD will force the company to focus more on monetizing their IP more aggressively, and will make better business decisions wrt DOC.

I would not be surprised to see TSRA in the 30's later this year.

JMHO,

NJ

[NukeJohn]

The Battle for control of the board is getting ugly

http://ih.advfn.com/p.php?pid=nmona&article=57460543

Guess we'll know who wins on May 2rd.

NJ

[NukeJohn]

Resistance at $20 is holding. It has now been tested three times. When it finally breaks through $20, that will become the support level. An announcement that one of the three companies sampling MEMS has decided to use it in their phones should be enough to propel it through $20, but that might not happen for a while..

[NukeJohn]

Looks like TSRA broke out of a channel four days ago and is headed higher.

There should be some resistance at $20.00, but if it clears that, it has some room to run.



JMHO,

NJ

[NukeJohn]

It Looks like Starboard has awakened the BOD of Tessera.

Tessera has brought in two new Directors, and is looking for a replacement for their CEO.

http://www.tessera.com/abouttessera/pressroom/Pages/newsreleases.aspx?releaseId=750571

I doubt that will be enough to ward off Starboard, who seem to be on a mission to replace the whole BOD.

JMHO,

NJ

[NukeJohn]

This recent presentation has some good info about their MEMS technology.

http://files.shareholder.com/downloads/TSRA/2357483005x0x643466/EAEEC887-7837-4BA9-9D13-CA40ED3556EE/IR_PPT_-_March_2013_FINAL.pdf

It appears they haven't given up on it, just had some delays (technicla issues?, manufacturing issues?).

TSRA is worth keeping an eye on.

JMHO,

NJ

[NukeJohn]

The big question is not whether there is impropriety on the part of the CEO, it is really what is happening with Tessera's MEMS technology? Does it work? Do they have camera module customers lined up? When will the MEMS product be launched and revenue start increasing like TSRA management said a year ago.

We need to pay close attention to the developing story at TSRA.

JMHO,

NJ

[NukeJohn]

Now, Starboard has responded to Tessera.

http://ih.advfn.com/p.php?pid=nmona&article=56596759