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Home > News > Investors Turn On Patent-Challenged Tessera

March 4th, 2008

Investors Turn On Patent-Challenged Tessera

Abstract:
Tessera Technologies took a beating from investors on Tuesday after the Patent Office rejected one of its key patents.

San Jose-based Tessera Technologies (nasdaq: TSRA - news - people ) said the U.S. Patent and Trademark Office rejected its already heavily licensed 627 patent. The nanotechnology company said the "issued patent is presumed to be valid, intact and enforceable" while it appeals the ruling, a process that takes twenty-four months on average. Investors were shaken by the tainted patent. The company fell 39.0%, or $8.99, to close at $14.07.

On Feb. 29, the Patent Office rejected every tenet of the patent. Competitor Siliconware had sought a reevaluation of five lucrative Tessera patents. This group of patents have been challenged in litigation before. Tessera has reported that the contentious patents have resulted in more than $250 million in cumulative licensing earnings.

Source:
forbes.com

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