SAN JOSE, Calif. — (BUSINESS WIRE) — June 2, 2017 — Invensas Corporation ("Invensas" or "the Company") announced today that a German appellate court denied Broadcom Ltd. and Broadcom Corp.’s (collectively, “Broadcom”) motion to stay enforcement of a patent infringement judgment that a German district court recently entered against Broadcom. Invensas is a subsidiary of Xperi Corporation (Nasdaq: XPER).
The appellate court’s ruling allows the Company to begin enforcing the district court’s judgment, which enjoined Broadcom and the other defendants from offering, putting on the market, using, or importing (or possessing for such reasons) the infringing products in Germany. The judgment also requires Broadcom to recall infringing products from the German market, to destroy or have destroyed infringing products in their possession in Germany, and to provide an accounting of their infringing activities. The patented technology relates to an interconnect structure for use in flip-chip semiconductor products. The enjoined products include Broadcom chips used in consumer products such as cell phones and other mobile devices, set-top boxes, routers, modems, and gateways, as well as Ethernet switches and other chips designed for data centers, enterprises, and cloud computing servers.
“We are very pleased with the appellate court’s ruling and we intend to begin taking steps to enforce the judgment, including the provisions enjoining Broadcom from selling or distributing the infringing chips destined for the German market, and requiring that Broadcom recall and destroy infringing chips,” said Paul Davis, the Company’s senior vice president and general counsel. “Additionally, we intend to notify certain Broadcom customers, suppliers and distributors of the court’s judgment over the next two weeks to ensure that the infringing products are not shipped into the German market.”
Broadcom filed a motion seeking to increase the bonds that Invensas posted to make the judgment enforceable to at least €505 million. The appellate court has not yet ruled on the bond motion and the Company anticipates that it will be several months before the appellate court holds a hearing and rules on the motion. The judgment is enforceable while the bond motion is pending.
The parties are involved in several parallel proceedings involving the patent-in-suit. Broadcom’s affiliate Avago Technologies GmbH filed a nullity proceeding against the patent-in-suit with the German Federal Patent Court. The Federal Patent Court may issue a preliminary ruling in the Fall of 2017, and a hearing is scheduled for January 2018. Broadcom also appealed the substantive ruling of whether it infringes Invensas’ patent. The Company expects that issue to be heard and decided sometime in 2018. In addition, the U.S. counterpart to the patent-in-suit is at issue in proceedings filed by the Company and its affiliates Tessera Technologies, Inc., Tessera, Inc., and Tessera Advanced Technologies, Inc. against certain Broadcom affiliates and customers in the U.S. International Trade Commission and in the U.S. District Court for the District of Delaware. The Dutch designation of the same European patent is also at issue in parallel proceedings in the Netherlands. The ITC’s initial determination is due on or before June 26, 2017, and the Dutch trial is scheduled for November 3, 2017.
About Xperi Corporation's Semiconductor and IP Licensing Business
Tessera and Invensas are subsidiaries of Xperi Corporation. Over the past 27 years, research and development at both Tessera and Invensas has led to significant innovations in semiconductor packaging technology, which has been widely licensed and is found in billions of electronic devices globally. Invensas develops next-generation semiconductor packaging and interconnect technologies for memory, mobile, computing and automotive applications. Through collaborative partnerships with world-class manufacturing companies and high-volume equipment and materials suppliers, Invensas licenses these technology solutions to original equipment manufacturers, original design manufacturers, integrated device manufacturers, fabless device suppliers, foundries and outsourced assembly and test providers, and supports the technology transfer at customer-designated sites. Additionally, Invensas' low temperature wafer bonding technologies target the image sensor, DRAM, MEMS, RF and 2.5D logic markets.
Safe Harbor Statement
This press release contains forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties that could cause actual results to differ
significantly from those projected, particularly with respect the
Germany, ITC, Delaware and Dutch proceedings. Material factors that may
cause results to differ from the statements made include the plans or
operations relating to the businesses of Xperi Corporation; market or
industry conditions; changes in patent laws, regulation or enforcement,
or other factors that might affect Xperi's ability to protect or realize
the value of its intellectual property; the expiration of license
agreements and the cessation of related royalty income; the failure,
inability or refusal of licensees to pay royalties; initiation, delays,
setbacks or losses relating to Xperi's intellectual property or
intellectual property litigations, or invalidation or limitation of key
patents; fluctuations in operating results due to the timing of new
license agreements and royalties, or due to legal costs; the risk of a
decline in demand for semiconductors and products utilizing our audio
and imaging technologies; failure by the industry to use technologies
covered by Xperi's patents; the expiration of Xperi's patents; Xperi's
ability to successfully complete and integrate acquisitions of
businesses; the risk of loss of, or decreases in production orders from,
customers of acquired businesses; financial and regulatory risks
associated with the international nature of Xperi's businesses; failure
of Xperi's products to achieve technological feasibility or
profitability; failure to successfully commercialize Xperi's products;
changes in demand for the products of Xperi's customers; limited
opportunities to license technologies due to high concentration in
applicable markets for such technologies; the impact of competing
technologies on the demand for Xperi's technologies; failure to realize
the anticipated benefits of Xperi's recent acquisition of DTS, Inc.,
including as a result of integrating the business of DTS; pricing
trends, including Xperi's ability to achieve economies of scale; the
expected amount and timing of cost savings and operating synergies; and
other developments in the markets in which Xperi operates, as well as
management's response to any of the aforementioned factors. You are
cautioned not to place undue reliance on the forward-looking statements,
which speak only as of the date of this release.