SAN FRANCISOAn arbitration panel has unanimously ruled in favor of Tessera Technologies Inc. in the company's contractual dispute with Amkor Technology Inc., Tessera said Tuesday (Oct. 28).
The three-person arbitration panel issued a confidential interim award with all three members of the panel unanimously finding, among other things, that the asserted Tessera patents are valid and enforceable and that certain of Amkor's products are made under the patents, Tessera said.
Amkor responded later in the day with a statement that confirmed the panel's finding in favor of Tessera but said that the panel ruled that most the packages that Tessera said it wanted royalties on were not subject to royalty provisions.
Tessera said the panel found it is owed monetary damages for Amkor's breach of a license agreement for failure to pay royalties on a broad range of products. The panel will issue its final award stating the exact amount of damages at a later date, according to Tessera.
According to a statement issued by Amkor later Tuesday, the arbitration panel ordered that damages for past royalties for infringing packages from March 2002 through March 2008 be apportioned using percentages set by the panel on a product "family by family" basis. Amkor said it believes that the final damage award will be well below the $85 to $115 million originally claimed by Tessera in its initial arbitration filing.
"We expect that the monetary award will be material," said Henry Nothhaft, president and CEO of Tessera, in a statement.
"While we denied having any liability in the case, we can now move forward without the uncertainty that accompanied these claims," said James Kim, Amkor CEO. "Our cash position remains solid and the ruling is not expected to have a material impact on our liquidity or ongoing business."