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Amkor Technology Agrees to Pay Tessera, Inc. $155 Million to Settle Arbitration

Saturday, January, 24, 2015

A dispute over the licensing of a patented chip design will finally be settled with Amkor Technology agreeing to pay Tessera, Inc., $155 million.  Both companies have agreed to end all suits and counter-suits or other claims against each other as part of the settlement agreement. 


Amkor Technologies had licensed a semiconductor chip design from Tessera, but the two companies fell into a disagreement over the true costs of the license.  Tessera filed suit and Amkor filed several counter-suits as the dispute dragged on. 


The agreement stipulates that Amkor will pay the $155 million in quarterly installments of equal value, spread out over the next four years.  Both sides have also certified that the payment settles all disputes and claims between them related to the semiconductor chips.  The agreement obviates a previous judgment of $128 million and all interest accrued as Amkor appealed the award. 


The settlement comes with no hard feelings, as both companies have expressed a desire and intention of working together in the future, and the possibility of future licensing agreements between the two is very high.The arbitration process appears to have been ideal in this situation, allowing for a fast and more or less friendly settlement that resolved all disagreements without rancor, in a settlement that both sides perceive as fair.  In fact, the settlement language specifies that the companies will seek to find further opportunities for collaboration, an unusual clause in an arbitration settlement.