Legal Woes Sideline Tessera

Originally Published In the News March 4, 2008 12:30 PM

Tessera Technology has handed shareholders back to back 40% declines over the past month.

We are trying to sort out the details, but the latest implosion seems to be related to last week’s patent ruling.

The shares are currently halted, but Tessera is calling the patent reexamination business as usual:

``This is expected in a normal course of the reexamination process,’’ Julie Seymour, a spokeswoman for Tessera, said in an interview today. ``In the initial round of the reexamination process, it is common for the PTO to preliminarily reject. This is a non-final decision in the reexamination process and we plan to vigorously defend our patents.’’

In all, the patent office has rejected elements of four patents in the review process since Feb. 21, according to Siliconware lawyers and Tessera. Bloomberg

Traders might want to punch up Silicon Precision Industries Co. ticker (SPIL-NASDAQ) to keep abreast as it would seem their PR campaign is inflicting the pain, while Tessera burys its head in the sand.

Tessera’s management has a credibility issue, and letting Slicon Precision handle their IR function in unlikely to win them new fans. This is confusing, but for now it would seem the stock is getting clubbed again for news that was already priced in.

Strange.

Tessera Falls After Fourth Patent Is Rejected by U.S.
Bloomberg

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