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.

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