Tessera Technologies, Inc. (NASDAQ:TSRA) (the “Company”) today announced that on June 29, 2012, Tessera, Inc., a wholly-owned subsidiary of Tessera Technologies, Inc., received a letter from Powertech Technology Inc. (“PTI”) that purports to terminate its license agreement with Tessera, Inc. as of June 30, 2012. In the letter, PTI also stated that on July 30, 2012, it will make a payment to Tessera, Inc. in protest under the license agreement for the quarter ended June 30, 2012.
PTI filed a complaint against Tessera, Inc. in December of 2011, seeking a declaratory judgment that PTI had the right to terminate its license agreement due to a breach of contract by Tessera, Inc.
“PTI’s position is without merit because there was no breach of contract by Tessera, Inc.,” said Richard Chernicoff, president of Tessera Intellectual Property Corp. “We will continue to defend the license agreement in Court, while noting that PTI’s contribution to our revenue this year is already of declining significance in comparison to past years for reasons unrelated to the litigation. Because of the strength of our multiple portfolios and our diverse revenue sources, no single licensee's refusal to honor its contractual obligations will have a long term impact on our patent monetization business.”
Safe Harbor Statement
This document 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 letter from PTI, PTI’s assertions and position regarding its license agreement with Tessera, Inc., and the long-term impact on the Company’s patent monetization business. Material factors that may cause results to differ from the statements made include the plans or operations relating to the Company’s businesses; market or industry conditions; 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; 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 risk of a decline in demand for semiconductor and camera module products; 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, including the integration by DigitalOptics Corporation of Flextronics’s camera module business in Zhuhai, China; 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 and sell products due to high concentration in the markets for semiconductors and related products and camera modules; the impact of competing technologies on the demand for the Company’s technologies and products; failure by DigitalOptics Corporation to become a vertically integrated camera module supplier; and the reliance on a limited number of suppliers for the components used in the manufacture of DigitalOptics products. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. The Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended Dec. 31, 2011, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, include more information about factors that could affect the Company’s financial results. The Company assumes no obligation to update information contained in this press release. Although this release may remain available on the Company’s website or elsewhere, its continued availability does not indicate that the Company is reaffirming or confirming any of the information contained herein.