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Tessera Technologies Wins Arbitration Award against Amkor Technology

Friday, May, 16, 2014


The International Court of Arbitration has awarded $145 million to Tessera Technologies concerning a licensing agreement entered into in 1996 with Amarok Technology, Inc.  The licensing agreement concerned patents held by Tessera that were used by Amarok but not properly paid for, and required binding arbitration as the only possible legal solution to any disputes.


Tessera terminated the licensing agreement properly in 2011 and Amarok does not dispute the termination’s propriety.  However, Amarok denied misusing Tessera patents and denied owing them more than $113 million in unpaid fees.  However, the International Court of Arbitration of the International Chamber of Commerce, the only arbitration venue allowed under the terms of the licensing agreement, found that Amarok “intentionally and materially breached the parties’ license agreement” and awarded Tessera not just the $113 million in unpaid fees, but $20 million already paid by Amarok in 2012 and $12 million in unpaid interest that would have accrued on the fees had they been paid.  The Court also ordered that interest of 10% annually be paid on the principal until it is fully paid.


The two companies are also involved in a second arbitration process involving separate Tessera patents the company claims Amarok used without paying appropriate fees for.  That arbitration hearing is scheduled to commence in June 2014 unless Amarok enters into a voluntary settlement to avoid the process, which is possible in light of the overwhelming defeat in this arbitration hearing.  Tessera expressed satisfaction with the arbitration results.