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Tessera Technologies claims that its chip patents are being infringed upon

Tessera Technologies may not be a very familiar name to many people, but the company describes itself as a "leading provider of miniaturization technologies for the electronics industry." The company saw first quarter revenue of $46.8 million USD -- $35.7 million USD of which was for royalty and license fees. Its royalty fees were up 84 percent compared to Q1 2006.

"For the year 2007, we believe our royalties and license fees will grow approximately 55 percent as compared to 2006," said Tessera chairman, president and CEO Bruce McWilliams on May 3.

It looks as though Tessera is already gearing up for that 55 percent increase for 2007. Tessera has tipped off the U.S. International Trade Commission (ITC) on possible infringements on two of its patents. As a result, the ITC has opened a probe to investigate the matter.

ATI Technologies, Freescale Semiconductor, Motorola, Qualcomm, Spansion and STMicroelectronics are being investigated by the ITC. Tessera has also requested that the ITC issue a permanent exclusion order and a cease and desist order in the matter.

Tessera claims that the companies violated “section 337 of the Tariff Act of 1930 in the importation into the United States of certain semiconductor chips with minimized chip package size and products.” The patents cover a wide gamut of consumer electronics devices including mobile phones, PDAs, digital cameras and computers.

"We are pleased that the ITC has instituted an investigation as requested in Tessera's complaint," said Tessera general counsel Scot Griffin. "Tessera has previously won a judgment in the ITC on this family of patents with the ITC describing Tessera's technology as a 'paradigm shift' in semiconductor packaging.  Tessera's technology is widely recognized in the industry for enabling the development of a broad range of electronics used by millions of people every day."

"Our focus remains on providing innovative, game-changing technologies for the electronics industry, but Tessera has and will continue to vigorously defend its shareholders, customers, employees and partners against the unlawful use of our products," Griffen continued.

The patents infringed upon include Patent No. 5,852,326 (filed on July 6, 1998) and 6,433,419 (filed on January 20, 2000) which detail a "Face-up semiconductor chip assembly."

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patents limits competition...
By shraz on 5/15/2007 8:45:59 PM , Rating: 2
Patents are giving too easily now. They need to fix it! I am for patent that is very useful, unique, and costed alot in R&D.




RE: patents limits competition...
By paydirt on 5/15/2007 8:56:45 PM , Rating: 1
yes, very annoying, and the company quote is like they have a product with technology and consumers are enjoying that technology. From the article, it appears they were given a patent on how to package consumer electronics. As far as why they would get a patent on that, it's kinda dumb.

But the guy who patented the "windowed" envelope became a billionaire and ended up donating the money to many charities.


RE: patents limits competition...
By Furen on 5/15/2007 9:13:39 PM , Rating: 4
It sounds like the patent covers chip packaging, not the packaging of the actual end-user devices. Without actually looking into it, Such a thing could be a legitimate patent as long as there is no prior art and it is not an obvious improvement upon older technology/methods (as per last week's supreme court decision).


RE: patents limits competition...
By TomZ on 5/15/2007 9:15:38 PM , Rating: 2
quote:
it appears they were given a patent on how to package consumer electronics. As far as why they would get a patent on that, it's kinda dumb.

No, click on the patent links - the patents are related to semiconductor packages, not product packages.

Also, why does everyone have such a lame knee-jerk reaction when they hear the word "patent"? Did you even consider the possible merits of the company's clams for even one second? Sheesh.


RE: patents limits competition...
By Warren21 on 5/15/2007 11:45:19 PM , Rating: 5
quote:
Also, why does everyone have such a lame knee-jerk reaction when they hear the word "patent"? Did you even consider the possible merits of the company's clams for even one second? Sheesh.


I do agree that innovation is what drives our technology forward, and that patents are crucial in protecting the inventor's/s' rights.

Sadly however, the reality today is that there are many smaller companies who simply use patents as a way of syphoning money from larger corporations by patent fishing, as they never intend to use this IP they own (though official statements would never admit to that).

DT has had quite a few articles on here in the past about such cases...


By smitty3268 on 5/15/2007 11:57:33 PM , Rating: 4
When a company is getting 76% of it's revenue from licensing fees and is planning to increase it in the future, I get the impression that they aren't really a good contributor to society and are just patent trolls. Still, you're right - I really have no idea what their patent is for and perhaps it is legitimate.


RE: patents limits competition...
By raven3x7 on 5/16/2007 12:15:55 AM , Rating: 2
Maybe because hey are a patent troll that doesn't have nor intents to build a product utilizing any of the patents they have registered. As such they are abusing the patent system in such a way that makes it more difficult for companies producing useful technologies to get their products to the market. This in my opinion does stifle innovation rather than promote it.


RE: patents limits competition...
By TomZ on 5/16/07, Rating: 0
By Crank the Planet on 5/17/2007 2:32:52 PM , Rating: 2
Honestly, invoking a law that's 77 years old? To protect a patent that like everybody and their brother has violated? I can think of several Fortune 50 companies that have been violating this for years! And why are they now coming forth with this? Don't tell me it all of a sudden came to their attention.


IF....
By ira176 on 5/16/2007 12:14:54 AM , Rating: 2
AMD could afford it, they should buy out the company and fire all their employees.




RE: IF....
By JAB on 5/16/2007 3:42:23 AM , Rating: 3
I am sure they have diamond studded parachutes and would simply become parasites somewhere else.
patent troll needs to be added to the dictionary. Right now patent law is doing more to slow donwn innovation. All you have to do it open a text bok apply for a patent for everything that is already being done and sure for anything that falls through the patent office filters.


By Mich4elm4n on 5/16/2007 3:39:29 AM , Rating: 2
"But the guy who patented the "windowed" envelope became a billionaire and ended up donating the money to many charities. " lol, you mean Bill Gates?
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