Tessera Reaffirms Its Rights - LEH $46PT set.
Carl Gutierrez, 03.28.08, 6:15 PM ET
Today was Tessera Technologies' lucky day as a patent case against competitors was brought back to life sending shares of the company skyrocketing.
Tessera Technologies (nasdaq: TSRA - news - people ) announced that the ITC overruled a judge's order to suspend a wireless patent infringement case against Motorola (nyse: MOT - news - people ), Qualcomm (nasdaq: QCOM - news - people ), as well as others. The announcement sent Tessera's shares up 33.0%, or $5.44, to $21.93, by the end of trading for the week. Tessera provides miniaturization technologies for the electronics industry. The patents relate to chip packages, which carry electrical signals between chips and computers and protect the chips from contamination.
In a statement, Motorola said it's disappointed and "firmly believes that it has a strong case on the merits and is fully, albeit reluctantly, prepared to present its case at the appropriate time."
For their part, shares of Motorola were down 3.1% at close on Friday, while Qualcomm lifted 1.1%.
Tessera is currently seeking damages on four patents it claims have been infringed upon. The company argues that the trespassed patents are being unlawfully used across the semiconductor industry by companies such as A-DATA Technology, Acer, and Centon Electronics. Since Feb. 15, the Patent Office has rejected several of Tessera's infringement claims.
Tessera's share price history has been rocky over the past few months. The stock sunk last month when the stay by an ITC administrative law judge was announced. The company's share price then surged again when it unknotted confusion over the actions by the Patent Office. (See: "Tessera Up After Reassurances")
Christopher Muse, an analyst at Lehman Brothers, said the company's stock price will likely continue to rise, as the decision adds a catalyst in the upcoming months. According to the Associated Press, Muse went on to say that the unanimity of the decision highlights the strength of the company's position in asserting their patents in court regardless of simultaneous U.S. Patent and Trademark Office re-exams. Muse currently rates shares as "overweight" and has a $46 price target.
SOURCE: Forbes.com
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