Tessera and Motorola Settle Patent Lawsuit
Published on: 2nd Jun 2009
Note -- this news article is more than a year old.
Tessera Technologies has announced that it has settled a lawsuit against Motorola. Under the worldwide license, Motorola will pay royalties on shipments of certain electronic products including cell phones, set top boxes, and radio equipment that incorporate unlicensed chips that use Tessera s patented TCC technology. The license, which charges a volume based fee for otherwise unlicensed chips, enables Motorola to avoid interruption of supply to its customers through compliance with the orders recently issued by the International Trade Commission in Investigation
“It is important for us to form long-term commercial relationships to better enable our licensees to use our technology, and this agreement with Motorola does just that,” stated Henry R. Nothhaft, president and CEO of Tessera. “In addition to an exercise fee payable under the pre-existing option agreement, the license agreement announced today includes an initial license fee as well as volume based, forward royalties that will be collected over the term of the license."
As a result of the agreement, Tessera is raising its second quarter 2009 total revenue guidance to range from US$46-49 million to between $59 million and $61 million. Second quarter 2009 Micro-electronics revenue, all of which will be royalty and license related, is now expected to range between $53 million and $55 million, driven by the signing of the Motorola license agreement and better than anticipated revenue from other licensees.