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Tessera Patent Rejected
Written by Philip Buonpastore
Wednesday, 05 March 2008
SAN JOSE, CA - Tessera Technologies investors are concerned after the Patent Office rejected one of the company's key patents.
The company reported that the U.S. Patent and Trademark Office has
rejected its widely licensed 627 patent, but has stated that the patent
is "presumed to be valid, intact and enforceable" while appealing the
ruling. The US Patent appeals process takes an average of two
years. The patent problems have caused the company stock price to be
devalued by 39%.
Competitor Siliconware had argued for a
reevaluation of five Tessera patents, and on Feb. 29, the Patent Office
rejected the 627 patent.
Commenting on the rejection, CEO Bruce
McWilliams said the ruling "is not a final decision and should not be
characterized as such," siting the "strength and validity of our
battle-tested patents" and promising to "vigorously defend them."
The
company is currently seeking damages on four patents that it says have
been infringed, including the 627 patent, stating that the patents are
currently being unlawfully used in many areas in the semiconductor
industry by companies such as Acer, A-DATA Technology, and Centon
Electronics.
Last
month a judge halted Tessera's lawsuit against Motorola and others
while Tessera's chip designs are re-examined by patent regulators. The Patent
Office has already rejected several of Tessera's infringement claims,
according to the law firm Orrick, Herrington and Sutcliffe, which
represents Siliconware.
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