SK Hynix and Tessera announced a new eight-year patent license deal:
Tessera Technologies, Inc. announced today that its Tessera, Inc. and Invensas Corporation subsidiaries each entered into new eight-year patent license agreements with SK hynix Inc.
"We are delighted that these new and broader agreements build on our long-standing and positive relationship with SK hynix, which has become the first DRAM manufacturer to reach agreements that give it access to both our Tessera, Inc. and our Invensas Corporation patent portfolios," said Robert A. Young, chief executive officer and president, Tessera Technologies, Inc. "Multi-year agreements like these benefit our customers with secure pricing and provide us with running royalties that fund new innovations."
The companies did not disclose the specific financial terms of the agreements, under which SK hynix will make a one-time payment and pay running royalties. The agreement will result in an increase in the Company's recurring royalty revenues from SK hynix beginning in Q2 2013 because the Company reports royalties one quarter in arrears. The Company and SK hynix also agreed to dismiss the antitrust lawsuit pending in California state court. The Company is neither updating its financial guidance nor providing additional financial guidance in connection with this milestone.
"Our business is connecting patented ideas to manufacturers, like SK hynix," said Young. "SK hynix now can make optimal decisions for its customers with the benefit of licenses to more than 1,200 issued patents in the Tessera, Inc. and Invensas Corporation portfolios."