Qualcomm Disagrees with ITC Determination in Tessera Patent Infringement Issue

SAN DIEGO - May 20, 2009 - Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of advanced wireless technologies, products and services, today stated that it is disappointed with the U.S. International Trade Commission's (ITC) final determination that Qualcomm's accused chip packages infringe two patents asserted by Tessera (patents '326 and '419), which it also found valid.

The ITC also issued a limited exclusion order banning Qualcomm and other respondents from importing into the United States the accused chip packages except to the extent those products are licensed.

In preparation for a possible adverse result, Qualcomm has already shifted supply of accused chips for the U.S. market to a licensed supplier, Amkor. This permits Qualcomm to continue to supply the U.S. market without interruption. Amkor has been a Tessera licensee for some time and has long been one of Qualcomm's major packaging suppliers.

“While we respectfully disagree with the ITC's final decision, in anticipation of a possible adverse ruling, Qualcomm has already begun supplying its customers with chips packaged by Amkor to meet demand for the U.S. market,” said Alex Rogers, senior vice president and legal counsel for Qualcomm.

In addition to the approaching expiration of the patents in September 2010, the patent claims asserted by Tessera are currently being reexamined by the U.S. Patent & Trademark Office. The Patent Office has issued final rejections of all of the asserted claims in both patents as invalid based on prior art. Tessera is contesting the final rejections and the process remains ongoing.

Source: Qualcomm