Tessera to confront Amkor's breach of license

SAN JOSE, USA: Tessera Technologies Inc. announced that arbitration involving Amkor Technologies has begun. The arbitration process will allow Tessera to address Amkor's breach of its license agreement with Tessera.

Tessera previously notified Amkor of Amkor's noncompliance with the parties' agreement, and had recently stated that legal proceedings involving Amkor were likely.

"We believe that Amkor once again is in violation of its contract," stated Henry R. Nothhaft, president and chief executive officer, Tessera. "We have already begun proceedings to determine the extent of their actions and will take the necessary steps to protect our innovation and technology, our shareholders, and our licensees."

Tessera's intellectual property has been upheld repeatedly in court and private arbitration proceedings. Last year, an arbitration panel required Amkor to pay Tessera more than $60 million based on Amkor's prior breaches of its license.

Tessera's action against certain companies in the International Trade Commission (ITC), Inv. No. 337-605, was recently completed, subject to appeals, with findings that Tessera's patents were valid and enforceable.

The importation of certain unlicensed products using Tessera's intellectual property is currently prohibited by the US government, and violations of the ITC's orders may carry penalties of up to $100,000 per day.