Tessera Receives Award In Amkor Arbitration; ICC Issues Addl Award Of $125 Mln

(RTTNews) - Tessera Technologies Inc. (TSRA) announced Wednesday that its Tessera, Inc. subsidiary received an arbitration award against Amkor Technology Inc. (AMKR) from the International Court of Arbitration of the International Chamber of Commerce or ICC.

The total award of about $145 million includes $20 million paid by Amkor in 2012, unpaid principal of $113 million, and estimated unpaid interest of $12 million through the date of the award. Additional interest will continue to accrue at a rate of 10% per year on the unpaid principal.

"We are pleased that Tessera Inc.'s rights were affirmed by the arbitration tribunal. This binding award reflects our commitment to enforcing our license rights when necessary, as we strive to receive fair value for the use of our innovations and intellectual property," said Tom Lacey, Chief Executive Officer of Tessera Technologies, Inc.

The parties entered into a license agreement in 1996, and agreed that all disputes would be submitted to final and binding arbitration before the ICC. The tribunal convened by the ICC found that Amkor had intentionally and materially breached the parties' license agreement, and that, as a result, Tessera Inc. properly terminated the license agreement in 2011.

Another arbitration hearing, addressing Tessera Inc.'s claims that Amkor failed to pay royalties for its use of other Tessera Inc. patents, is scheduled to take place in June 2014.