SAN JOSE, Calif.--(BUSINESS WIRE)--
Tessera Technologies, Inc. ("Tessera"), a wholly owned subsidiary of
Xperi Corporation ("Xperi" or "the Company"), issued a statement today
in response to litigation filed by Taiwan Semiconductor Manufacturing
Company Limited ("TSMC"), a Taiwanese company, against Tessera and
certain of its subsidiaries late in the day on October 13, 2017. TSMC
filed an action in the United States District Court for the Northern
District of California, expressing its concern that the U.S.
International Trade Commission ("ITC") will adopt the initial
determination of Administrative Law Judge ("ALJ") Sandra Dee Lord and
enter an order excluding the import of infringing Broadcom chips
manufactured by TSMC, and products of the other respondents containing
these chips. TSMC seeks an injunction to prevent Tessera from enforcing
its rights in the ITC. TSMC's request is based on the same patent
exhaustion argument that was already fully litigated and rejected by ALJ
Lord in the ITC investigation.
"This appears to be an eleventh-hour attempt by TSMC to circumvent the
jurisdiction and lawful authority of the ITC, which protects U.S.
industries against the importation of foreign infringing products," said
Paul Davis, Xperi's senior vice president and general counsel. "But ALJ
Lord already considered the argument TSMC raises, and concluded that
TSMC does not have the right to sell products that infringe our ‘946
patent. We are confident that the District Court will reject TSMC's
belated attempt to end-run the ITC and re-litigate this issue."
On June 30, 2017, ALJ Lord issued an initial determination finding that
Broadcom and the other respondents broadly infringe U.S. Patent No.
6,849,946 (the "‘946 patent"). The ‘946 patent has twice been found to
be valid - once by ALJ Lord and again by the U.S. Patent Office Patent
Trial and Appeal Board when it denied a petition for inter partes
review against the patent. ALJ Lord's decision is now under review by
the ITC Commissioners, whose final determination is expected by December
1, 2017.
"TSMC's filing confirms the importance and breadth of our patented
technology," Davis added. "TSMC states in its complaint that an
exclusion order would impact more than a half-billion U.S. dollars
annually in chips/components, to over 300 Broadcom customers, as well as
billions of dollars in downstream products built on the infringing
Broadcom chips. We continue to be open to negotiating a license
agreement with Broadcom that fairly compensates us for its use of this
valuable intellectual property."
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 the legal
proceedings filed by TSMC, the ITC proceedings, and the applicability of
the U.S. Patent Nos. 6,849,946 to Broadcom or its customers. 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.
SOURCE: XPERI CORPORATION
XPER-L
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Xperi Corporation
PR Contact:
Jordan Miller, +1
818-436-1082
jordan.miller@xperi.com
or
Investor
Relations Contact:
Geri Weinfeld, +1 818-436-1231
geri.weinfeld@xperi.com
Source: Xperi Corporation
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