Court Bars Sales and Distribution of Infringing Broadcom Chips in
Germany
SAN JOSE, Calif.--(BUSINESS WIRE)--
Invensas Corporation ("Invensas" or "the Company"), announced today that
it has prevailed in two German patent infringement actions against
Broadcom Ltd. and certain of its subsidiaries and distributors. Invensas
is a subsidiary of Xperi Corporation (Nasdaq:XPER). On March 17, 2017,
the District Court of Mannheim issued a judgment in each of the cases
finding that Broadcom, Ltd., Broadcom Corporation, and Broadcom Germany
GmbH (collectively "Broadcom"), as well as its German distributors
Mouser Electronics Inc., EBV Elektronik GmbH & Co KG, and Arrow Central
Europe GmbH, infringe the German designation of Invensas' European
Patent No. 1 186 034 B1 (the "'034 Patent").
The Mannheim court 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 court also ordered
them 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.
"The court confirmed that Broadcom is infringing our intellectual
property, and rejected Broadcom's arguments that it does not infringe,"
said Paul Davis, the Company's senior vice president and general
counsel. "The court's judgment validates the applicability of our
intellectual property across multiple semiconductor segments," he added.
"While we remain willing to continue discussions and negotiate a fair
and reasonable license agreement with Broadcom, if Broadcom continues to
use our patented technology without authorization, we will take all
measures at our disposal to enforce the court's judgments."
The court also refused the defendants' request to stay the infringement
cases pending the outcome of a Broadcom affiliate's nullity action
against the patent, which is scheduled for hearing in January 2018.
Accordingly, the court's judgments will become enforceable once they are
served on Broadcom and the other defendants and bonds are posted, which
the Company expects will occur within approximately one week. The
defendants have the right to appeal the Mannheim court's decisions.
The U.S. counterpart to the ‘034 Patent 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 at issue in parallel
proceedings in the Netherlands. The ITC trial is scheduled for March
27-31, 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 26 years, Tessera's research and development 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, and Delaware proceedings, and the applicability of the
‘034 patent or its U.S. counterpart to Broadcom, its distributors or
customers. 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 that 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'sSEC 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.
XPER-L
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Xperi Corporation
PR Contact:
Jordan Miller, +1
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Relations Contact:
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geri.weinfeld@xperi.com
Source: Xperi Corporation
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