Tessera wins patent dispute with chipmakers

May 21, 2009

(AP) -- Tessera Technologies Inc. said Wednesday that it won a patent dispute over small-format semiconductor packaging products, with the International Trade Commission issuing a cease-and-desist order against rivals Motorola Inc., Qualcomm Inc., Freescale Semiconductor Inc. and Spansion Inc.

The order bars the four companies from selling from inventory any items that infringe on the patents, Tessera said.

Tessera, which develops miniaturization technology for electronics makers, had asked the ITC in December to consider banning imports of the packaging products.

Qualcomm said in a statement that it had already shifted the U.S. supply of the chips in question to a licensed supplier, Amkor.

"This permits Qualcomm to continue to supply the U.S. market without interruption," the company said.

Qualcomm said it disagreed with the ruling. It also said the patents will expire in 2010, and that the claims asserted by Tessera are being re-examined by the U.S. Patent & Trademark Office, which had rejected claims under the patents as invalid. Qualcomm said Tessera is contesting the rejections by the U.S. Patent Office.

In late trading, Tessera shares rose $3.37, or 20.3 percent, to $19.98, having closed the regular session up $1, or 6.4 percent, at $16.61. Qualcomm shares closed earlier up 23 cents at $42.57 and slipped 17 cents after-hours.

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