© tom schmucker Business | May 18, 2015

Tessera takes Toshiba to court

Tessera, Inc. filed a breach of contract lawsuit in California state court against Toshiba Corporation. Tessera, Inc. alleges that Toshiba failed to pay amounts owed for years under the parties' license agreement and interfered with Tessera, Inc.'s exercise of its audit rights.
Toshiba and Tessera, Inc. entered into a license agreement in 1999 that granted Toshiba a license to certain of Tessera, Inc.'s semiconductor packaging technologies in exchange for royalty payments. For many years, Toshiba was a significant customer and paid royalties under the license agreement. In 2011, however, independent auditors found that Toshiba had not paid all amounts due under the agreement. Toshiba refused to pay the amounts that the auditors determined to be owed, and then in 2013, while the parties were attempting to resolve the audit issue, Toshiba unilaterally stopped paying all royalties. Notwithstanding this dispute, the agreement remains in full force and effect.

"It is unfortunate that Toshiba, which has been a customer for more than a decade, has taken this position," said Tessera's CEO Tom Lacey. "We continue to view litigation as a last resort, but sometimes litigation is necessary to protect our rights and ensure that our stockholders receive a fair return on our valuable inventions and intellectual property. In this instance, despite Tessera's best efforts and attempts for several years to find a mutually acceptable resolution, we were unable to reach what we view as a fair agreement with Toshiba to resolve this dispute. If Toshiba is willing, we remain interested in pursuing a reasonable and fair settlement for both parties."

Tessera, Inc. filed its complaint in Santa Clara County Superior Court.


Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Load more news
July 18 2018 5:55 pm V10.0.0-1