Amkor Technology Announces Rulings in Tessera Proceedings

CHANDLER, Ariz.--(BUSINESS WIRE)--

Amkor Technology, Inc. AMKR today announced two rulings in its long-running dispute with Tessera Technologies, Inc. related to a license agreement entered into in 1996 between Tessera and Amkor's predecessor. On October 10, 2014, the Patent Trial and Appeal Board at the United States Patent and Trademark Office, in an inter partes review proceeding, or IPR, ruled on our petition seeking cancellation of certain claims of U.S. Patent No. 6,046,076. In a two-one decision, the IPR board reversed its preliminary determination and denied Amkor's petition with respect to the most material claims. As previously reported, an arbitration panel has awarded Tessera royalties of $113 million plus interest, most of which relate to our alleged use of the ‘076 patent. The Superior Court for San Francisco County formally confirmed the arbitration panel's award on October 9.

“We believe the decisions by the IPR board and Superior Court are in error and plan to pursue all avenues of appeal,” noted Gil Tily, Amkor's executive vice president and general counsel. “The IPR was decided by a split decision, which is unusual for these types of proceedings. We strongly agree with the dissenting judge's view that the ‘076 claims at issue are unpatentable and we plan to appeal the decision to the United States Court of Appeals for the Federal Circuit. Furthermore, the California state court ruling is just the initial step in the State Court confirmation process, and we will be challenging that decision in the appellate courts.”

Other proceedings with respect to the arbitration award in the California state appellate court and the United States District Court for the District of Delaware, which are described more fully in Amkor's previous filings with the Securities and Exchange Commission, remain pending.

About Amkor

Amkor is a leading provider of semiconductor packaging and test services to semiconductor companies and electronics OEMs. More information about Amkor is available from the company's filings with the Securities and Exchange Commission and at Amkor's website: www.amkor.com.

Forward-Looking Statement Disclaimer

This announcement contains forward-looking statements within the meaning of federal securities laws. All statements other than statements of historical fact are considered forward-looking statements including, without limitation, statements regarding appeal of the IPR and Superior Court decisions and the pursuit of other proceedings. These forward-looking statements involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward-looking statements, including, but not limited to, that there can be no assurance that the final amount due to Tessera will not be significantly more or less than Amkor's expectations or accruals, that Amkor will prevail in any appeal of the IPR and Superior Court proceedings or any other proceedings relating to this dispute or regarding the impact of such proceedings.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect Amkor's operating results and financial condition are discussed in Amkor's Annual Report on Form 10-K for the year ended December 31, 2013, and in its subsequent filings with the Securities and Exchange Commission made prior to or after the date hereof. Amkor undertakes no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this announcement.