Tessera, Amkor argue over $130 million

LONDON – Packaging companies Tessera Technologies Inc. and Amkor Technology Inc. have continued to argue even after an arbitration ruling on a now-terminated patent license agreement.

Tessera (San Jose, Calif.) announced Wednesday (Feb. 20) that the International Court of Arbitration of the International Chamber of Commerce (ICC) issued an award in the company's favor regarding its dispute with Amkor (Chandler, Ariz.). It stated that it now expects to receive $130 million from Amkor in addition to $20 million already paid by Amkor in the third quarter of 2012.

The actual amount payable is the subject to a further determination by the ICC panel.

The arbitration, which began in 2009, marks the second time the two companies have gone to the ICC to resolve the amount of royalties owed over a specific patent license agreement.

Amkor also issued a statement but said that it expects the final damage award will be well below the $150 million amount stated by Tessera. Amkor previously recorded a charge of $34 million in respect of the panel's interim award in this arbitration, and subsequently made a payment of approximately $20 million to Tessera in August 2012.

Tessera said it will pursue additional patent damages and equitable remedies in further proceedings before the ICC, as well as in the United States District Court, based in part on the arbitration tribunal's finding that Amkor's advanced packaging technology uses Tessera's intellectual property.

"Originally Tessera claimed more than $400 million in the arbitration," said Ken Joyce, CEO of Amkor in a statement. "As we move closer to the conclusion of this arbitration, we are confident of achieving a final resolution for far less than that amount and without a material impact on Amkor's liquidity."

Any further cash payment in respect of the latest ruling is not anticipated before the second quarter 2013, Amkor said.


Related links and articles:

www.tessera.com

www.amkor.com

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