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Tessera, UTAC sign tech agreement settling lawsuit

Posted: 17 Mar 2010     Print Version  Bookmark and Share

Keywords:Tessera  UTAC agreement  licensing  litigation 

Tessera, Inc., the semiconductor packaging subsidiary of Tessera Technologies, Inc. has signed an updated technology licensing agreement with United Test and Assembly Centre Ltd (UTAC), an independent provider of test and assembly services for a wide range of semiconductor devices. The two companies have also resolved their litigation concerning past royalties under the initial licence with UTAC.

The initial term of the updated license agreement runs through the end of 2016. UTAC has the option to renew the licence for an additional five year term. Among other consideration to Tessera, under the terms of the agreement UTAC will pay Rs.69.27 crore ($15 million) in cash to address past royalties owed under the initial licence. Tessera will receive three separate payments, the first of which will occur in the first quarter of 2010 with the remainder in the second half of 2010. As a result of this initial payment, Tessera is raising its first quarter 2010 total revenue guidance range to be between Rs.290.92 crore and Rs.295.53 crore ($63.0 million and $64.0 million). This compares to previous first quarter 2010 total revenue guidance given on January 28, 2010, of between Rs.267.83 crore ($58.0 million) and Rs.281.68 crore ($61.0 million).

The updated licence agreement and payment for past royalties resolves all outstanding litigation between the companies, settling the parties' pending action in the superior court of the state of California (Alameda County).

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