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Tessera (TSRA) Sues Broadcom for Eight Patent Violations

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Tessera Technologies Inc. along with some of its subsidiaries has announced legal proceedings against Broadcom Limited (AVGO - Free Report) and some of its customers and distributors for the infringement of a total of eight patents.

The proceedings are in both national and international jurisdictions including the United States International Trade Commission, the U.S. District Court for the District of Delaware, and courts in Germany and the Netherlands.

Tessera has been trying to come up with licensing solutions in partnership with Broadcom for several years. The company tried out technical collaborations related to semiconductor technology development and discussed licensing its intellectual property.  However, licensing agreements could not be reached and all of Tessera’s efforts went in vain.

Notably, Tessera has assured that since Broadcom is not an existing customer, the proceedings are not going to impact its second quarter or 2016 full-year guidance. The company expects that its current target operating model will be able to cover litigation expenses in 2016.

CEO Tom Lacey commented, “Today’s actions were not taken lightly and are made only after years of effort to reach a fair and equitable resolution without litigation.” “At this point, we believe that litigation is necessary to defend our intellectual property rights. As we have said in connection with other legal matters, we remain willing to negotiate a resolution that fairly compensates Tessera and its shareholders for our valuable intellectual property. However, we are also fully prepared to proceed through the entirety of the legal process, and we remain very confident in our ability to achieve a positive outcome,” he further added.

Tessera is a Zacks Rank #2 (Buy) stock.

Better-ranked stocks in the broader technology space include Amkor Technology, Inc. (AMKR - Free Report) and TiVo Inc. , each sporting a Zacks Rank #1 (Strong Buy).

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