Patent Law

The following is excerpted from an article today, May 23, 2008, at Forbes.com written by Melinda Peer:

Tessera Technologies' resilient patents just got stronger--and so did the tech company's stock price as Micro Electronics took licenses on the firm's miniaturized chip package technology.

Shares of the San Jose, Calif.-based Tessera Technologies (nasdaq: TSRA) rallied 7.8%, gaining $1.46 at $20.16 in Friday's afternoon trading session.

Under the settlement announced Thursday, Micro Electronics agreed to pay royalties on all past and future sales of its branded products that use Tessera's technology.

But even sweeter than the payments, which aren't expected to materially affect Tessera's sales, was the validation. Micro Electronics and its subsidiary, International Products Sourcing Group, agreed that Tessera's patents "are valid and infringed by the accused products in the action." The corroboration tips the scales in Tessera's favor against the 13 remaining respondents implicated in the International Trade Commission action brought by Tessera.

Read the full article here.