Xperi (XPER)

[NukeJohn]

Tessera wins Arbitration ruling at International Chamber of Commerce

http://www.tessera.com/abouttessera/pressroom/Pages/newsreleases.aspx?releaseId=689921

The details of this haven't been released yet, but what is happening in this situation is that over 2 years ago, Tessera cancelled Amkor's license, because there was a dispute in the payments (Amkor was just paying a pittance compared to what TSRA thought they should be paying). Other companies, such as QCOM, were using the patent exhaustion ruling (in LG v Quanta at the Supreme Court), to hide behind the Amkor license and not pay Tessera. So, Tessera decided to cancel the Amkor license altogether. There was an arbitration clause in the contract and the arbiter was the ICC....so this case went to the International Chamber of Commerce for arbitration.

The ruling Tessera just won apparently is just that they did legally cancel the Amkor license....so for the past 2+ years, Amkor did not have a legitimate license and anyone who was using them as a manufacturere was trying to use the patent exhaustion issue to hide being the Amkor Tessera licnse and avoid paying royalties to Tessera. Those companies will now be subject to paying full restitutiuon for that time period.

I'll have to listen to the CC and review the presentation later to give you further thoughts on what has transpired.

JMHO,

NJ