Oct 11, 2017

Invensas Gives Update on German Legal Proceedings Against Broadcom

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 "[i]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 (Nasdaq: 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.

Xperi, DTS, Invensas, FotoNation, Tessera and their respective logos are trademarks or registered trademarks of affiliated companies of Xperi 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.

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 to the Broadcom legal proceedings. Material factors that may cause results to differ from the statements made include the plans or operations relating to the businesses of the Company; market or industry conditions; changes in patent laws, regulation or enforcement, or other factors that might affect the Company'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 the Company'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 the Company's patents; the expiration of the Company's patents; the Company'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 the Company's businesses; failure of the Company's products to achieve technological feasibility or profitability; failure to successfully commercialize the Company's products; changes in demand for the products of the Company'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 the Company's technologies; failure to realize the anticipated benefits of the Company's recent acquisition of DTS, Inc., including as a result of integrating the business of DTS; pricing trends, including the Company'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 the Company 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 the Company's recent reports on Form 10-K and Form 10-Q and other documents of the Company on file with the Securities and Exchange Commission (the "SEC"). The Company'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 the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company or its business or operations. Except to the extent required by applicable law, the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.



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

Source: Xperi Corporation

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