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TI
Retains Rights to Qualcomm Patents
DALLAS (June 9, 2005) -- The Delaware Supreme Court has affirmed the ruling
of the Delaware Court of Chancery, by a 5-0 vote, rejecting a claim by
Qualcomm Incorporated that Texas Instruments Incorporated (TI) (NYSE:TXN)
materially breached the parties' cross-license agreement.
Qualcomm had appealed a ruling by Chancellor William B. Chandler, III
of the Delaware Court of Chancery, issued in June last year. In that ruling,
the court rejected an assertion by Qualcomm that TI materially breached
the cross-license agreement that has existed between the companies since
December 2000. The Delaware Supreme Court heard the appeal April 20 and
in its finding, dated June 8, affirmed the Court of Chancery ruling that
no such material breach of the agreement occurred.
With Qualcomm having abandoned in August 2004 a previous claim for damages,
the latest ruling disposes of all outstanding claims in the existing litigation
between the parties. The license rights of each party under the cross-license
agreement remain in effect.
"We are pleased that the Delaware Supreme Court has upheld the Court
of Chancery's ruling in TI's favor on these issues. We believe that this
was the correct outcome," said Senior Vice President and General
Counsel Joseph F. Hubach.
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About
Texas Instruments
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.
Safe
Harbor
“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
the company’s business strategy, outlook, objectives, plans, intentions
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;
- Economic,
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;
- Natural
events such as severe weather and earthquakes in the locations in which
TI, its customers or its suppliers operate;
- Availability
and cost of raw materials and critical manufacturing equipment;
- Changes
in the tax rate applicable to TI as a result of changes in tax law,
the jurisdictions in which profits are determined to be earned and taxed,
the outcome of tax audits and the ability to realize deferred tax assets;
- Changes
in the accounting treatment of stock options and other share-based compensation;
- Losses
or curtailments of purchases from key customers and the timing and amount
of distributor and other customer inventory adjustments;
- Customer
demand that differs from company forecasts;
- The financial
impact of inadequate or excess TI inventories to meet demand that differs
from projections;
- Product
liability or warranty claims, or recalls by TI customers for a product
containing a TI part;
- TI’s
ability to recruit and retain skilled personnel; 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.
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