Jun 2, 2017

German Court Denies Broadcom Bid to Stay Invensas Patent Infringement Injunction

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 (Nasdaq: 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.

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.

Safe Harbor Statement

This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ significantly from those projected, particularly with respect the Germany, ITC, Delaware and Dutch proceedings. Material factors that may cause results to differ from the statements made include the plans or operations relating to the businesses of Xperi Corporation; market or industry conditions; changes in patent laws, regulation or enforcement, or other factors that might affect Xperi's ability to protect or realize the value of its intellectual property; the expiration of license agreements and the cessation of related royalty income; the failure, inability or refusal of licensees to pay royalties; initiation, delays, setbacks or losses relating to Xperi's intellectual property or intellectual property litigations, or invalidation or limitation of key patents; fluctuations in operating results due to the timing of new license agreements and royalties, or due to legal costs; the risk of a decline in demand for semiconductors and products utilizing our audio and imaging technologies; failure by the industry to use technologies covered by Xperi's patents; the expiration of Xperi's patents; Xperi's ability to successfully complete and integrate acquisitions of businesses; the risk of loss of, or decreases in production orders from, customers of acquired businesses; financial and regulatory risks associated with the international nature of Xperi's businesses; failure of Xperi's products to achieve technological feasibility or profitability; failure to successfully commercialize Xperi's products; changes in demand for the products of Xperi's customers; limited opportunities to license technologies due to high concentration in applicable markets for such technologies; the impact of competing technologies on the demand for Xperi's technologies; failure to realize the anticipated benefits of Xperi's recent acquisition of DTS, Inc., including as a result of integrating the business of DTS; pricing trends, including Xperi's ability to achieve economies of scale; the expected amount and timing of cost savings and operating synergies; and other developments in the markets in which Xperi operates, as well as management's response to any of the aforementioned factors. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in Xperi's recent reports on Form 10-K and Form 10-Q and other documents of Xperi on file with the Securities and Exchange Commission (the "SEC"). Xperi's SEC filings are available publicly on the SEC's website at www.sec.gov. Any forward-looking statements made or incorporated by reference herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Xperi will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Xperi or its business or operations. Except to the extent required by applicable law, Xperi undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.



Xperi Corporation
PR Contact:
Jordan Miller, +1 818-436-1082
Investor Relations Contact:
Geri Weinfeld, +1 818-436-1231

Source: Xperi Corporation

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