SAN JOSE, Calif.--(BUSINESS WIRE)--Jul. 20, 2009-- Tessera Technologies, Inc. (Nasdaq:TSRA) today provided an update on certain activities in its U.S. International Trade Commission (ITC) actions.

Investigation No. 337-TA-605 (Wireless ITC Action)

President Barack H. Obama and the Office of the U.S. Trade Representative allowed the 60-day Presidential Review Period to expire without modifying the Limited Exclusion Order (LEO) and Cease and Desist Orders (CDOs). The ITC’s LEO prohibits, among other things, the importation of certain infringing electronic devices that use Tessera’s patented technology, which are imported by or on behalf of the named respondents, and the CDOs prevent, among other things, the sale, offer for sale or distribution of those same infringing devices. As a result of the expiration of the Presidential Review Period, the respondents, including Qualcomm, Freescale and Spansion, are no longer permitted to import or sell infringing products, even under bond.

“Tessera has spent hundreds of millions in research and development efforts to bring its innovative technologies to market, and currently employs nearly 300 employees to continue these efforts,” stated Henry R. Nothhaft, president and CEO of Tessera. “Many companies, including most of the world’s largest semiconductor companies, have licensed and incorporated Tessera’s technologies to the benefit of their customers and shareholders. The ITC's orders in this case affect only unlicensed companies that are trying to maintain an unfair competitive advantage against their law-abiding competitors, who stand to lose even further market share to the respondents and their customers if the ITC’s orders are stayed or overturned.”

Respondents have filed appeals with the Federal Circuit, along with “emergency” motions to delay enforcement of the ITC orders. The motions request that the Federal Circuit grant a temporary stay to allow it time to consider briefing regarding whether to issue a longer stay during the pendency of the Federal Circuit appeal. Tessera has already filed papers with the Federal Circuit opposing a temporary stay and will respond to respondents’ briefings in due course.

On Friday, July 17, 2009, the ITC refused to delay enforcement of its LEO and CDOs and denied the respondents’ motion to stay those orders.

The respondents in the Wireless ITC action are ATI Technologies, Freescale Semiconductor, Inc., Qualcomm, Inc., Spansion, Inc., Spansion, LLC and ST Microelectronics N.V. Tessera asserted infringement of two Tessera patents, U.S. Patent No. 6,433,419 (‘419) and U.S. Patent No. 5,852,326 (‘326). Motorola, Inc. signed a license agreement with Tessera after the issuance of the Limited Exclusion Order and is thus permitted to import and sell otherwise infringing products.

Investigation No. 337-TA-649 (Subcon ITC Action)

On July 17, 2009, the Administrative Law Judge in the Subcon ITC Action, Judge Theodore Essex, approved Tessera's request to dismiss the investigation. In addition to granting Tessera's request for dismissal, Judge Essex found multiple violations of court orders by respondent Siliconware Precision Industries Co., Ltd.

The respondents in the Subcon ITC Action were Siliconware Precision Industries Co., Ltd., STATS ChipPAC, Ltd., ASE Inc. and ChipMOS Technologies, Inc., as well as several of these companies’ affiliates.

Safe Harbor Statement

This press release 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 Tessera’s litigation and reexamination strategies, procedural schedules, and the actions of government entities. Material factors that may cause results to differ from the statements made include delays, setbacks or losses relating to our intellectual property or intellectual property litigations, or any invalidation or limitation of our key patents; fluctuations in our 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 our ability to protect our intellectual property; the risk of a decline in demand for semiconductor products; failure by the industry to adopt our technologies; competing technologies; the future expiration of our patents; the future expiration of our license agreements and the cessation of related royalty income; the failure or refusal of licensees to pay royalties; failure to achieve the growth prospects and synergies expected from acquisition transactions; and delays and challenges associated with integrating acquired companies with our existing businesses. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. Tessera's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, include more information about factors that could affect the company's financial results. Tessera assumes no obligation to update information contained in this press release. Although this release may remain available on Tessera's website or elsewhere, its continued availability does not indicate that Tessera is reaffirming or confirming any of the information contained herein.

About Tessera

Tessera Technologies, Inc., invests in, licenses and delivers innovative miniaturization technologies for next-generation electronic devices. The company’s micro-electronics solutions enable smaller, higher-functionality devices through chip-scale, 3D and wafer-level packaging technology, as well as high-density substrate and silent air cooling technology. Tessera’s imaging and optics solutions provide low-cost, high-quality camera functionality in electronic products and include image sensor packaging, wafer-level optics and image enhancement intellectual property. The company also offers customized micro-optic lenses, from diffractive and refractive optical elements to integrated micro-optical subassemblies. Tessera licenses its technologies, as well as delivers products based on these technologies, to promote the development of the supply chain infrastructure. The company is headquartered in San Jose, California. For information call 1.408.321.6000 or go to www.tessera.com.

Tessera and the Tessera logo are trademarks or registered trademarks of Tessera, Inc. or its affiliated companies in the United States and other countries. All other company, brand and product names may be trademarks or registered trademarks of their respective companies.

Source: Tessera Technologies, Inc.

Tessera Technologies, Inc.
Michael Anthofer, 408-321-6711
EVP and CFO
Moriah Shilton, 408-321-6713
Investor Relations