Semiconductor companies, for example, are notorious for suing each other. Still, the company has seen its share of ups and downs relating to high-stakes patent litigation cases with the likes of Nokia and Broadcom.ĭon't get the wrong idea lots of companies litigate. Qualcomm, a much bigger fish - in fact, the biggest among IP companies - is certainly more stable with its $65 billion market cap. The gain - amounting to over $750 million in market valuation - occurred in just over one hour of trading in which over 20 million shares where traded.Īgain, the huge gain was the result of a jury verdict that, while being a critical victory for the Los Altos company, won't have a direct material effect on earnings for some time to come. So why the nuclear fallout? Trigger-happy investors.Įarlier in the week, shares of Rambus- a designer of high-speed chip interface technology - skyrocketed 39 percent on a favorable jury verdict in a patent infringement case against Hynix, Micron, and Nanya. Moreover, there is no immediate, material effect on Tessera's earnings. Sure, that sounds ominous, but the patents in question had previously been battle-proven in prior litigation against big-name companies. Patent and Trademark Office, followed by an International Trade Commission judge's stay of Tessera's patent infringement action against Freescale, Motorola, Qualcomm, and others. What KOd the stock? The reexamination of three Tessera patents by the U.S. That's over a billion dollar drop in market cap. Last month, the share price of Tessera- a public company that develops and licenses miniaturization technology - dropped more than $26, a loss of two thirds of its value, in less than two weeks. And for that privilege, their executives, employees and investors go through hell. Why should you care? Because, their technology helps almost all your gadgets work the way they do. Theirs is a complex, controversial world characterized by huge capital investments, epic legal battles, rollercoaster stock rides, fanatical investors, and of course, lots of patents. Intellectual property (IP) companies are unique business entities.
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