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TI
Retains Rights to Qualcomm Patents
DALLAS (July 1, 2004) -- Texas Instruments Incorporated (NYSE: TXN) today
said that the Delaware Court of Chancery has expressed its intent to grant
TI’s motion for summary judgment in a lawsuit between TI and Qualcomm
Incorporated.
The court indicated it agreed with TI’s argument that its disclosure
of information regarding terms of a patent cross-license agreement was
not a material breach, and that Qualcomm is not entitled to terminate
TI’s rights to Qualcomm’s CDMA patents under the agreement.
“Qualcomm’s efforts to strip us of our rights under this cross-license
agreement have failed. This is a victory for TI,” said Senior Vice
President and General Counsel Joseph F. Hubach. “We are grateful
for the expeditious manner in which the court has dealt with this case.”
The court is expected to consider Qualcomm’s claims for damages
based on a non-material breach at a trial scheduled to begin August 16.
Qualcomm filed suit against TI July 25, 2003, alleging a material breach
of the confidentiality of the agreement. TI filed suit September 23, 2003,
alleging that Qualcomm violated the cross-license agreement by granting
royalty discounts to handset makers that use Qualcomm’s semiconductor
products. The court indicated today that it intends to grant Qualcomm’s
motion that it did not breach the agreement on this issue.
The court is expected to issue a written opinion confirming these indications.
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“Safe
Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This release includes forward-looking statements intended
to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking statements
generally can be identified by phrases such as TI or its management “believes,”
“expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases
of similar import. Similarly, statements in this release that describe
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or goals also are forward-looking statements. All such forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those in forward-looking statements.
We urge you
to carefully consider the following important factors that could cause
actual results to differ materially from the expectations of the company
or its management:
- Market
demand for semiconductors, particularly for analog chips and digital
signal processors in key markets, such as telecommunications and computers;
- TI’s
ability to maintain or improve profit margins, including its ability
to utilize its manufacturing facilities at sufficient levels to cover
its fixed operating costs, in an intensely competitive and cyclical
industry;
- TI’s
ability to develop, manufacture and market innovative products in a
rapidly changing technological environment;
- TI’s
ability to compete in products and prices in an intensely competitive
industry;
- TI’s
ability to maintain and enforce a strong intellectual property portfolio
and obtain needed licenses from third parties;
- Consolidation
of TI’s patent licensees and market conditions reducing royalty
payments to TI;
- Timely
completion and successful integration of announced acquisitions;
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social and political conditions in the countries in which TI, its customers
or its suppliers operate, including security risks, health conditions,
possible disruptions in transportation networks and fluctuations in
foreign currency exchange rates;
- Losses
or curtailments of purchases from key customers or the timing of customer
inventory adjustments;
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of raw materials and critical manufacturing equipment;
- TI’s
ability to recruit and retain skilled personnel;
- Fluctuations
in the market value of TI’s investments and in interest rates;
and
- Timely
implementation of new manufacturing technologies, installation of manufacturing
equipment, and the ability to obtain needed third-party foundry and
assembly/test subcontract services.
For a more
detailed discussion of these factors, see the text under the heading “Cautionary
Statements Regarding Future Results of Operations” in Item 1 of
the company’s most recent Form 10-K. The forward-looking statements
included in this release are made only as of the date of publication,
and the company undertakes no obligation to update the forward-looking
statements to reflect subsequent events or circumstances.
Texas Instruments
Incorporated provides innovative DSP and Analog technologies to meet our
customers’ real world signal processing requirements. In addition
to Semiconductor, the company’s businesses include Sensors &
Controls and Education Technology. TI is headquartered
in Dallas, Texas, and has manufacturing, design or sales operations in
more than 25 countries.
Texas
Instruments is traded on the New York Stock Exchange under the symbol
TXN. More information is located on the World Wide Web at www.ti.com.
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