Document:

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                                                                   EXHIBIT 10.16

Tessera Confidential

                                  TESSERA, INC.
                            TCC(R) LICENSE AGREEMENT

       This Agreement is entered into as of the Effective Date, between Tessera,
Inc., a corporation organized under the laws of Delaware, having a principal
place of business at 3099 Orchard Drive, San Jose CA 95134 ("Tessera") and
Samsung Electronics Co., Ltd. a corporation organized under the laws of Republic
of Korea having a principal place of business at 250 Taepyung-Ro, 2 Ga,
Chung-Ku, Seoul, Korea ("Licensee") with reference to the following facts:

                                     Scope:

       WHEREAS, Tessera owns certain semiconductor integrated circuit ("IC")
packaging technology it calls TCC technology along with related IC tape mounting
technology, where said technologies include manufacturing processes, package
device designs and specifications, including design rules and certain other
proprietary information and technology required to manufacture TCC packages or
related IC packages, collectively, (the "Technology") (each of the foregoing
capitalized terms is more particularly described herein); and

       WHEREAS, Licensee wishes to use the Technology including Tessera's
intellectual property rights to manufacture and assemble said TCC and related IC
packages that contain IC devices Licensee owns and to sell same in accordance
with the terms hereof.

       The Parties Hereto Agree:

       I.     DEFINITIONS:

       As used herein, the following terms shall have the following meaning:

       A. The term "TCC" is an acronym for Tessera Compliant Chip, a type of
integrated circuit ("IC") package made under certain issued Tessera Patents
licensed hereunder. Generally, a TCC package has substantially coplanar bump or
solder ball contacts disposed in a grid array pattern and comprises a thin
compliant multi-layer structure mounted to at least one surface of an IC die,
with permanent flexible electrical connections between at least one of said
contacts and a corresponding bond pad on said IC die.

       B. The term "uBGA(R)" is a type of TCC package.

       C. The term "Technology" means Tessera Patents, copyrights, and know-how
relating to design, manufacture, and assembly of TCC and related packages
(excluding Batch Technology as defined herein) including know-how owned by
Tessera as of the Effective Date (defined above). Technology shall also include
TCC derivatives, modifications, improvements, or enhanced specifications made by
Tessera during the term of this Agreement.

       D. The term "Technical Information" means Tessera technical information
relating to Technology and know-how which may be proprietary and/or confidential
in nature and which may include, without limitation, material specifications,
current best method of manufacture and

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assembly, plating processes, tooling specifications, design methods, techniques,
proprietary software, process data, yields, reliability data, and other Tessera
engineering data and test results needed by Licensee (the foregoing by mutual
agreement) to exercise the rights, licenses and privileges granted hereunder. A
summary of the current Technical Information is listed in Attachment B.

       E. The term "Patent" means letters patents, utility models, allowances
and applications therefor in all countries of the world, including re-issues,
re-examinations, continuations, divisions, and all corresponding foreign
patents.

       F. The term "Tessera Patent" means Patent(s) which arise out of
inventions based on the Technology made and/or acquired by Tessera based on the
Technology prior to expiration or termination of this Agreement. The term
Tessera Patent shall further include any third party patent based on the
Technology under which Tessera or any successor thereof has the right to grant
licenses of the scope granted herein, as of the Effective Date or at any time
during the term of this Agreement, without the payment of royalty or other
consideration to such third parties except for payment to third parties for
inventions made by said parties while employed by Tessera or any successor
thereof, including US patents and US patent applications set forth in Attachment
A attached and Improvements thereto which had or have a first effective filing
date in any country prior to expiration or termination of this Agreement.

       G. The term "Batch Technology" as used herein means Technology including:
(i) any method or result of U.S. Patent Number 5,518,964 (and related Patents)
for making flexible electrically conducting element(s), joining said elements to
electrical contact(s) on a substantially planar electrical element such as a
semiconductor integrated circuit, undiced IC wafer, or interconnect substrate,
and forming said element(s) away from the plane of said contacts in a
predetermined fashion into the flexible electrical lead(s) of a TCC package;
(ii) any method or result of U.S. Patent 5,455,390 (and related Patents) for
making and forming flexible conducting element(s) on a dielectric film and then
simultaneously joining said elements to electrical contacts on a substantially
planar electrical element such as a semiconductor integrated circuit, undiced IC
wafer or interconnect substrate to produce the flexible electrical leads of a
TCC package; and/or (iii) any method or result of further invention or Patent
made or acquired by Tessera during the term hereof covering any batch processing
method for simultaneously forming, producing and/or connecting a plurality of
flexible electrical leads of a TCC package. Notwithstanding, the parties
expressly agree that any TCC package made and/or connected individually on a
semiconductor integrated circuit or undiced wafer by traditional wire bonding
methods and/or tape automated bonding ("TAB") gang bonding methods, is NOT
included in Batch Technology.

       H. The term "Billable Pin" means any electrical connection to an IC bond
pad made or contained in any TCC or related IC package licensed hereunder.

       I. The term "Licensee's Improvements" means device design modifications,
derivatives, improvements, or enhanced specifications, relating to the TCC
package or related materials that may be made by Licensee arising out of
Technology or Technical Information or incorporated in a TCC or related IC
package by Licensee for sale or other transfer to a third party during the term
of this Agreement or extension hereof. Notwithstanding, the term "Licensee

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Improvements" does not include manufacturing process improvements unless such a
process improvement enables a particular package structure to the exclusion of
other practically feasible methods of making such a structure. The parties agree
that Licensee's inventions that do not arise out of Tessera's confidential
information, Technology, or Technical Information shall be excluded from the
definition of Licensee's Improvements unless such invention infringes a Tessera
Patent or is incorporated in a TCC or related IC package by Licensee for sale or
other transfer to a third party.

       J. The term "Standards" means those minimum standards set by Tessera for
quality, reliability, materials, external device properties and/or measurements
pursuant to which Licensee may sell any TCC package or related IC package under
a Tessera trademark.

       K. The term "Affiliate" means any company which agrees to be bound by the
terms and conditions of this Agreement and is more than fifty percent (50%) of
the voting stock is owned or controlled by Licensee. A company shall be
considered an Affiliate only so long as such majority ownership or control
exists.

       L. The term "TCMT" means a single or multi-layer flexible film made under
or using the Technology and incorporated into the manufacture of a TCC or
related IC package. Typically, TCMT is comprised of a first layer of flexible
film with external coplanar electrical contacts, each connected to one or more
flexible leads for direct bonding to bonding pads of an IC die, plus possible
optional signal or ground plane wiring layers. A compliant layer may optionally
be attached to the first layer on the side opposite the external electrical
contacts ready for die attach.

       M. The term "Effective Date" means the date this contract is approved by
the Korean Government; however, both parties acknowledge that they are bound by
the terms and conditions of the Agreement on the date of the last signing party
hereto.

       II.    LICENSEE RIGHTS:

       A. TCC Assembly License Grant. Subject to the terms and conditions
hereinafter set forth, Licensee's agreement to the provisions hereof including
all attachments hereto, and Licensee's payment of the fees and royalties stated
herein in Paragraph III, Tessera hereby grants Licensee a non-exclusive,
non-transferable, non-sub-licensable limited license to use the Technology and
Technical Information to make and/or have made TCC and related IC packages and
use or sell same world wide.

       B. TCMT Technical Information Excluded. Notwithstanding Licensee's rights
under Paragraph II.A. above, unless Licensee also enters a TCMT License with
Tessera and pays the full License Fee(s) thereof, Licensee shall not receive any
Technical Information, documentation, training, or other technology transfer
related to the manufacture of TCMT or related materials, or the conversion or
use of TAB tape or other flexible circuit materials for the manufacture of any
TCC or related IC package. Licensee expressly acknowledges that it shall develop
or acquire such information and/or know-how independent of any assistance
whatsoever from Tessera.

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       C. Batch Technology Excluded. Notwithstanding anything herein to the
contrary, Batch Technology is excluded from the scope of this Agreement, and
Licensee's rights herein expressly exclude any right to package and/or assemble,
or sell any TCC or related IC package made using Batch Technology.
Notwithstanding, when Tessera decides to license such Batch Technology to
others, Tessera agrees to enter into good faith negotiations with Licensee on
the terms and conditions of a separate agreement to define the parties
relationship with respect to Batch Technology.

       D. No Implied License. Notwithstanding the foregoing, nothing in this
Agreement shall be construed to grant Licensee, its Subsidiaries or Affiliates,
successors or assigns or any third parties an implied license under any patent
owned by Tessera other than the Tessera Patents.

       III.   FEE AND ROYALTY:

       A. License Fee. As consideration for the licenses and the assembly rights
and privileges of section II. A., hereof, Licensee shall pay to Tessera the sum
of [*] US DOLLARS ($[*]) as a Licensee Fee for training, documentation, and
technology transfer.

       B. Royalty. In addition to the License Fee, Licensed shall pay running
royalties for the license granted in Paragraph II.A. twice annually to Tessera
during the term of this Agreement. Licensee shall pay a royalty to Tessera in
the amount of [*] (US$[*]) per Billable Pin for TCC or related IC packages made
by or for Licensee hereunder, whether sold, transferred for value or used
internally by Licensee. [*]. Further, no such royalty shall be due to Tessera
under this Agreement for TCC or related IC packages manufactured by a bona fide
Tessera TCC merchant market assembly licensee where such other Tessera licensee
has paid the royalties specified under such other licensee's TCC license
agreement and is thus not operating as a supplier for Licensee under Paragraph
IX.

       C. Volume Adjustments. Royalty payments due Tessera hereunder shall be
adjusted by multiplying Licensee's total base royalty calculated under Paragraph
B. above, by a [*] ([*]) until Licensee has paid Tessera [*] US DOLLARS (US$[*])
in aggregate royalties, and then by a [*] ([*]) until Licensee has paid Tessera
an additional [*] US DOLLARS (US$[*]) in royalties. DISCOUNT FOR PREPAYMENT: At
any time, Licensee may elect to pay Tessera [*] US DOLLARS (US$[*]) in lieu of
any such Volume Adjustments, in which event said Licensee shall notify Tessera
and tender such payment and henceforth pay royalties at the lowest level (as set
forth in Paragraph III.B., above).

       D. Most Favored Nations. As of the Effective Date, Tessera, in good
faith, intends that any agreement that Tessera enters into henceforth with
another similarly situated licensee whereby such licensee receives identical
rights, privileges, terms and conditions as contained in this Agreement, shall
be on royalty rate terms no more favorable to such other licensee than the

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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Royalty terms set forth in this Agreement. The following shall not be deemed
agreements subject to this Paragraph: (i) agreements between Tessera and its
Affiliates; (ii) cross-license or other agreements under which a substantial
portion of the consideration received by Tessera consists of rights to patents
and/or technology owned by the other party to such agreement; (iii) agreements
with governmental or educational agencies; (iv) agreements in settlement of
litigation; and (v) [*]. In the event that Tessera grants another license
subject to this Paragraph, then Tessera shall promptly notify Licensee of the
financial terms of such other license. Upon notice by Licensee, given within 30
days after such notice by Tessera, this Agreement shall be amended to substitute
all of the royalty terms of such other license for the Royalty terms of this
Agreement, provided that (a) Licensee must accept all of the royalty terms of
such other license, and may not select particular terms; and (b) such amendment
shall not affect Tessera's rights with respect to royalties or other moneys
accrued and/or paid prior to such amendment.

       IV.    TAXES:

       Licensee shall obtain a five (5) year tax exemption (starting from the
Effective Date) for all taxes levied against Tessera by the Government of Korea
pursuant to this Agreement. After such initial five (5) year tax exempt period,
Licensee shall withhold the amount of taxes levied by the Government of Korea on
the royalty payments made by Licensee to Tessera. Licensee shall promptly
provide Tessera with copies of bona fide tax certificates showing that such
Tessera tax payments have been made by Licensee to the Government of Korea.

       V.     LICENSEE REPORTS AND PAYMENT:

       A. Royalties shall be calculated beginning on the Effective Date of this
Agreement and shall be payable in full in semi-annual payments on a calendar
date basis. Such semiannual payment periods for royalties due Tessera shall
extend from January 1 to June 30 and from July 1 to December 31 of each year.
Licensee shall have twenty (20) days from the last day of a payment period to
deliver to Tessera a written Royalty Statement Report (by facsimile, with an
original by mail courier) describing the basis upon which royalties have been
calculated and the total royalty due Tessera for the applicable payment period.
Tessera shall then invoice Licensee (by facsimile, with an original by mail
courier) for the royalties due Tessera as set forth in such Royalty Statement
Report (or any adjusted amount as mutually agreed between the parties based upon
the information provided in the Royalty Statement Reports). Licensee shall then
have thirty (30) days from first receipt of Tessera's invoice to pay the
royalties due under Tessera's invoice. All payments under this Paragraph shall
be made in US Dollars by wire transfer to Silicon Valley Bank, 3003 Tasman
Drive, Santa Clara, CA 95054, Account No. 0350527875, Transit No. 121140399, or
such other bank or account as Tessera may from time to time designate in
writing. Payments shall be considered to be made as of the day on which they are
received in Tessera's designated bank or account.

       B. Licensee will submit with each payment, set forth in Paragraph V.A.
above, an accounting of the total quantity of TCC packages manufactured by
Licensee or for Licensee

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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through a Supplier (as defined in Paragraph IX) and sold, transferred for value
or used internally by Licensee as compared to the total quantity of TCC packages
manufactured for Licensee by a separate Tessera assembly licensee and sold,
transferred for value or used internally by Licensee.

       VI.    TECHNOLOGY TRANSFER:

       A. In addition to granting of the aforesaid licenses under the
Technology, upon Effective Date of this Agreement and the payment of the portion
of the License Fee described in Paragraph III.A. above Tessera will transfer to
Licensee, not later than thirty (30) days from the Effective Date, certain of
the Technology, including certain TCC package specifications, Standards and
certain Technical Information for the TCC packages licensed herein.

       B. Tessera will make available on at least a semiannual basis,
improvements which have been reduced to practice including changes and
modifications in Standards, methods, materials and specifications during the
term of this Agreement through Tessera's regularly published Technical Briefing
Bulletin or substantially equivalent method. Notwithstanding the foregoing,
Tessera is under no obligation to transfer and/or license any information
whether confidential, proprietary or otherwise that it may be prohibited from
transferring to Licensee by contract with a third party or applicable law. In
the case Tessera proposes to transfer proprietary or Confidential information to
Licensee, Tessera will first provide Licensee a non-confidential outline of the
proposed Confidential information, but shall not undertake or complete any
transfer unless it first receives Licensee's written acknowledgment and
approval. Notwithstanding any provision to the contrary, Tessera shall not be
under any obligation to transfer or disclose actual patent applications or
related documents to Licensee.

       C. For a period of up to twelve (12) months commencing with the Effective
Date of this Agreement, and according to a mutually agreeable time schedule and
manpower assignment schedule, Tessera will make certain of its engineering staff
available at its San Jose facilities for transfer activities, including joint
activities with Licensee's engineers, as may be necessary in accordance with
mutual agreement of the parties to successfully complete the Technology
transfer; provided, Tessera shall provide up to sixty (60) working man days of
engineering support during first twelve month period for such transfer activity.
If at the end of such transfer activity, Licensee has a good faith belief that
more training is needed in certain technical areas, Licensee shall specifically
define such technical areas to Tessera in writing and Tessera shall then provide
up to an additional thirty (30) working man-days of engineering support for the
Licensee defined technical areas during first twelve month period for such
transfer activity. Licenser agrees to pay all reasonable coach class air
travel and hotel charges incurred by Tessera personnel in connection with
engineering support performed at any of Licensee's facilities outside of San
Jose. Additional engineering interactions, conducted to collaborate on technical
issues of mutual concern, shall be supported by each party at its own expense.

       D. Additional engineering support (not to exceed sixty (60) working days)
beyond the initial twelve month period for an additional twelve (12) month
period may be made available, according to a mutually agreeable time schedule
and manpower assignment schedule, at a per diem rate of US $[*] per support
engineer, plus reasonable air travel and hotel charges. Any

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

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support or other services required thereafter may be provided upon terms
mutually agreeable to the parties.

       E. Tessera represents that the Technical information provided hereunder
will be prepared with reasonable care and warrants that the Technical
Information will, where applicable for similar types of TCC or related IC
packages, be the same as the Technical Information used by Tessera.

       VII.   IMPROVEMENTS GRANTBACK:

       A. Licensee hereby grants to Tessera a fully-paid, non-sub-licensable,
nontransferable, perpetual, right to use Licensee's Improvements and Licensee's
Patent covering any inventions contained in such Licensee's Improvements to
manufacture, have manufactured for Tessera, use or sell products. If Licensee
receives a paid up license right at the termination of this Agreement, under
paragraph X.B. below, Tessera shall have a fully paid up and perpetual license
on the terms set forth herein to use Licensee Improvements and Licensee Patents
to the same extent as Tessera had been licensed to use Licensee Improvements
and Licensee Patents immediately prior to such expiration.

       B. Licensee agrees to negotiate in good faith with other licensees of
Tessera on commercially reasonable terms a non-exclusive, non-transferable,
non-sub-licensable license under Licensee's Patents covering any inventions
contained in such Licensee's Improvements unless such other licensees refuse to
grant to Licensee similar licenses under any of such other licensees' patents
relating to any improvements developed by such other licensee on similar
commercially reasonable terms. In no event shall Licensee be under any
obligation to grant such licenses to other licensees of Tessera, unless
Licensee's Improvements are used in IC packages sold externally to
non-Affiliates or proposed by Licensee for incorporation into the Standards. If
requested by Licensee, Tessera agrees that it will assist the initiation of such
discussions between Licensee and such other licensees.

       C. Any improvement that is made through the joint efforts of Tessera and
Licensee shall be deemed a "Joint Improvement" hereunder and shall be the joint
property of both Tessera and Licensee, and both Tessera and Licensee shall have
a fully-paid, non-assessable, transferable, perpetual, sub-licensable right and
license to use such Joint Improvements, but such right and license shall not
include any right of license by implication with respect to any part of the
Technology. Licensee and Tessera shall reasonably consult with one another with
respect to applying for and maintaining jointly owned patents with respect to
such Joint Improvements at shared expense. In the event that one party hereto
(the "NOTIFYING PARTY;) NOTIFIES the other party that the Notifying Party wishes
to apply for or maintain a patent in any country for any such Joint Improvement
and the other party hereto does not confirm to the Notifying Party, within
thirty (30) days thereafter, that such other party will join in such patent
application and share the cost thereof, the Notifying Party shall have a right,
at its own expense, to apply for or maintain such patent in its own name, in
which case such patent shall be the sole property of the Notifying Party, and
the Joint Invention in the country covered by such patent shall be treated as an
improvement made solely by the Notifying party, and shall be subject to the
provisions of this Agreement covering such party improvements. The parties
hereto shall execute such documents and render

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such assistance as may be appropriate to enable the party properly having title
to such Improvements to maintain or obtain patents for the same.

       D. Licensee agrees to provide semiannually to Tessera on or about the
dates set forth in Paragraph V (Licensee Reports and Payments) written reports
on all Licensee Improvements, during the term of this Agreement. Notwithstanding
the foregoing, Licensee is under no obligation to transfer and/or license any
information whether confidential, proprietary or otherwise that it may be
prohibited from transferring to Tessera by contract with a third party or
applicable law. Notwithstanding any provision to the contrary, Licensee shall
not be under any obligation to disclose actual patent applications or related
documents to Tessera.

       VII.   TRADEMARKS & PATENT NOTICE:

              A. Ownership. Licensee acknowledges the ownership of Tessera's
trademarks including, but not limited to, TESSERA, TESSERA BLOCK LOGO, TCMT,
TCC, COMPLIANT CHIP and uBGA (hereinafter "Marks"), and agrees that it will do
nothing inconsistent with such ownership and that all use of the marks by
Licensee shall inure to the benefit of and be on behalf of Tessera. Licensee
agrees that nothing in this Agreement shall give Licensee any right, title or
interest in the Marks other than the right to use the Marks in accordance with
this Agreement to make and sell TCC packages and related IC packages according
to the Standards.

              B. Form of Use. License may use the Marks so long as Licensee
provides proper acknowledgment of ownership of the Marks in their documentation,
articles and promotional material and so long as such packaged devices meet the
Standards. Each such marketing or promotional item shall contain the following
text: "____________ (List of the Tessera Trademarks used in the item) are
registered trademarks of Tessera, Inc." or a suitable variant thereof to account
for asingular use of one or more of the Marks. Further, Licensee shall use its
best efforts to use the Tessera Trademarks as modifiers in conjunction with
generic nouns, e.g. the uBGA(R) package.

       Licensee agrees to use the Marks only in the form and manner with
appropriate legends as prescribed from time to time by Tessera, and not use any
other trademark or service mark in combination with any of the Marks without
prior written approval of Tessera. All of the Marks, except "TCMT" and "Micro
BGA", are federally registered by the U.S. Trademark Office. As such, Licensee
shall use the "(R)" symbol adjacent the Marks in all titles and headings and
other prominent uses of the Marks and shall also use its best efforts to use the
"V' symbol on at least the first and most obvious use of each of the Marks
within the text of any printed material. "TCMT" and "Micro BGA" are common law
trademarks, of Tessera. As such, Licensee shall use the "TM" symbol adjacent
these marks in all titles and headings and other prominent uses of the TCMT or
Micro BGA marks and shall also use its best efforts to use the "TM" symbol on at
least the first and most obvious use of each such mark within the text of any
printed material.

              C. Patent Notice. For each sale or other transfer of TCC or
Related IC Devices by Licensee, the documentation from Licensee shall include a
prominent written notice

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that "These products are made under a license from Tessera, Inc. under Patent
Numbers_________ (the then issued Tessera patents relevant to this Agreement)".

       IX.    SUPPLIER:

       Licensee, at its sole option, may enter agreements ("Subcontract") with
suppliers ("Supplier") to manufacture TCCs or related packages or components,
materials or services thereof which are licensed hereunder for Licensee only and
not for Supplier's use or sale to anyone other than Licensee, provided that: (a)
prior to any disclosure of Tessera confidential information, Licensee and
Supplier shall execute a Non-Disclosure Agreement having substantially similar
terms as Paragraph XIV herein (Non-Disclosure); (b) Licensee shall ensure that
Supplier receives no property rights to the Technology transferred under
Subcontract and that the rights to any improvements to the Technology made by
Supplier shall be Licensee Improvements as set forth in this Agreement; (c)
Licensee shall ensure that Supplier respect Licensee's duty to affix the
appropriate patent numbers, trademarks and other designations to, each product
or material made using the Technology as set forth under this Agreement; and
(d) Licensee shall indemnify and hold harmless Tessera and its successors and
assigns against any breach or any damages, costs, or expenses arising from or
related to any breach by Licensee or Supplier of the foregoing obligations.

       X.     TERM AND TERMINATION:

       A. Term: This Agreement shall become effective on Effective Date and,
unless earlier terminated as provided for elsewhere in this Agreement, shall
remain in full force until it automatically expires on the fifteenth (15th)
anniversary of the Effective Date provided that:

              1. On or before six months prior to the expiration date hereof,
Licensee must elect one of the following options and notify Tessera in writing
of its election, for the period beginning upon the expiration of this Agreement:

                     a. Licensee may elect to extend the term of this Agreement
for five years, which includes (i) continuing, for the said five year period,
the payment of full royalties hereunder, and (ii) continuing during such five
year period, all of the obligations, privileges, rights and licenses granted to
the parties hereunder including issued Tessera patents and Licensee's right to
receive from Tessera the Technical Information relating to improvements to be
made by Tessera up to the expiration of such five year period; or

                     b. If Licensee wishes to use further any applicable issued
Tessera patent granted prior to the expiration of this Agreement, Licensee may
elect to enter into a patent license agreement with Tessera for any such issued
Tessera patents and shall pay one-half (1/2) of the royalties listed in
Paragraph III.B.(i) hereunder for the lesser of five (5) additional years or the
life of the last expiring Tessera patent so licensed by Licensee without the
option to receive continuing Technical Information relating to improvements to
be made by Tessera up to the expiration of such five year period; or

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                     c. Licensee may elect to permit the Agreement to expire in
accordance with its terms (including termination of any payments of royalties to
Tessera and termination of any rights of Licensee to use further any Tessera
Patent licensed hereunder).

              2. Licensee shall give Tessera written notice of its elected
option by the above said notice date. In the event Licensee elects option (a) or
(b) above, the parties agree to meet at a mutually agreed time and place during
the year before the year of expiration of any extension of (a) or (b) above to
discuss and negotiate in good faith the reasonable terms and conditions for a
patent cross license agreement between the parties concerning any valid patents
owned by either party relating to the Technology, Licensee's Improvement, or any
packaging related improvements thereto, not otherwise covered in the provisions
of Subparagraph B. below, or Paragraph VI hereof.

       B. Paid-up license: Upon expiration of any extension hereof under option
(a) above or expiration of any one-half royalty patent license under (b) above,
Licensee shall have a fully paid-up and perpetual license on the terms set forth
herein to use Technology to the same extent as Licensee had been licensed to use
Technology immediately prior to such expiration. Said paid up license shall be
as follows:

              1. In the event that Licensee elects option X.A.(1)(a) above, such
license shall be for applicable Tessera Patent granted for twenty (20) years
from the Effective Date; or

              2. In the event that Licensee elects option X.A.(1)(b) above, such
license shall be for applicable Tessera Patent granted for fifteen (15) years
from the effective date,

       C. Termination for Breach. Either party may terminate this Agreement due
to the other party's breach of this Agreement, such as failure to perform its
material duties, obligations, or responsibilities herein (including, without
limitation, failure to pay royalties and provide reports and perform technology
transfer as set forth herein). The parties agree that such breach will cause
substantial damages to the party not in breach. Therefore, the parties agee to
work together to mitigate the effect of any such breach; however, the
non-breaching party may terminate this Agreement if such breach is not cured or
sufficiently mitigated (to the non-breaching party's satisfaction) within sixty
(60) days of notice thereof.

       D. Termination for Assignment. In the event that (i) a party either
sells or assigns substantially all of its assets or business to a third party or
(ii) a third party acquires more than fifty percent (50%) of the capital stock
entitled to vote for directors of such party ("Selling Party"), the Selling
Party shall notify the other party of such sale or assignment of assets or the
third party's acquisition. In any case of sale, assignment or acquisition, the
Selling Party shall provide to the other party a written confirmation from such
third party stating that such third party shall expressly undertake all the
terms and conditions of this Ageement to be performed by Selling Party. In the
event that such assignee/transferee does not agee to fulfill such obligations
under this Agreement, the other party shall reserve a right to terminate this
Agreement.

       E. Termination for Bankruptcy. In the event that one party becomes
bankrupt, permanently ceases doing business, makes an assignment for the benefit
of its creditors, commits

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an act of bankruptcy, commences any bankruptcy proceedings or other proceedings
in the nature of bankruptcy proceedings, or has commenced against it any
bankruptcy proceedings or other proceedings in the nature of bankruptcy
proceedings that are not dismissed within sixty (60) days, then the other party
shall have the right to terminate this Agreement immediately upon its notice.
Upon such termination the non-bankrupt party shall have an option to terminate
the obligations of both the parties to transfer or license Technology, Technical
Information, Tessera Patent, or Licensee's Improvement that is filed after the
date of termination for bankruptcy, with the parties retaining all rights to use
any Technical Information and Technology transferred prior to such termination
and/or Tessera Patent and Patent covering any inventions in Licensee's
Improvements, to the extent licensed hereunder, just prior to such termination
for bankruptcy, all such rights remaining in full force and good standing,
subject to continuation of the royalty payments as stipulated in Paragraph III
hereof.

       F. Any termination of this Agreement pursuant to this paragraph X, except
as provided in Subparagraphs X.B. and X.E. above, shall be deemed a
termination of this Agreement in accordance with its terms (including
termination of any payments of royalties to Tessera and any rights of Licensee
to use any Technology or Tessera Patent licensed hereunder).

       G. Survival Clause. Unless otherwise provided elsewhere in this
Agreement, the following provisions shall survive the termination or expiration
of this Agreement:

              1. Licensee's obligation to make payment to Tessera accrued under
this Agreement on or prior to expiration or termination.

              2. Licensee's obligation to submit written reports stipulated in
Paragraph V, Licensee Reports and Payment, and to permit the inspection and
audit of its account record stipulated in Paragraph XI, Reasonable Audit, unless
such termination is pursuant to Paragraph X.B. in which case Paragraphs V and XI
shall not survive the termination of this Agreement.

              3. Paragraph XIV, Non-Disclosure.

              4. Paragraph X, Term and Termination.

              5. Paragraph XII, No Warranties.

              6. Paragraph XIII, Limitation on Damages.

              7. Paragraph XV, Indemnity.

              8. Paragraph XVI, Miscellaneous.

       XI.    REASONABLE AUDIT:

              Upon reasonable written prior notice, Tessera shall have the right
to examine and audit through an independent third party CPA firm, not more
frequently than once per year, all records of Licensee that may contain
information bearing upon the amount of fees payable under this

                                 Page 11 of 21
<PAGE>   12

Tessera Confidential

Agreement from the previous three (3) years from the date of notification of the
audit; provided, however, that the said auditor shall have agreed in advance in
writing to maintain in confidence and not to disclose to Tessera or any third
party any proprietary information obtained during the course of such audit. The
results of any such audit shall be final, and within thirty (30) days after
receiving the auditor's report, Licensee shall make payment to Tessera of any
amount which may be found to be payable, if any. Tessera shall bear the
expenses of such audit examinations unless royalties due and owing to Tessera
are determined by the auditor to be at least five percent (5%) greater than such
similar amounts as calculated and/or paid by Licensee, in which case Licensee
shall bear such expenses.

       XII.   NO WARRANTIES:

       Licensee acknowledges and agrees that the rights and licenses, Technology
and Specifications granted or otherwise provided hereunder are provided to
Licensee "AS IS", with no warranty of any kind. TESSERA MAKES NO WARRANTY,
EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, CONCERNING THE SUBJECT MATTER OF THIS
AGREEMENT, INCLUDING WITHOUT LIMITATION, WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE, QUALITY, USEFULNESS OR NONINFRINGEMENT. Tessera makes no warranty that
the Technology or Standards will be sufficient or yield any particular result.

       Notwithstanding the foregoing, Tessera represents that to Tessera's
knowledge, as of the Effective Date, there are no pending claims that have been
made or actions commenced against Tessera for breach of any third party patents,
copyrights or trade secrets.

       XIII.  LIMITATION ON DAMAGES:

       IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER
PERSON OR ENTITY (UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER
THEORY) FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR
RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT, EVEN IF THE PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR LOSSES.

       XIV.   NON-DISCLOSURE:

       A. The parties agree that all confidential information disclosed either
orally or in writing by one party to the other pursuant to this Agreement shall
for a period of five (5) years from the date of first receipt of this
information, not be used except in accordance with the rights and licenses
granted pursuant to this Agreement and shall be maintained in confidence by the
receiving party, provided, however, that such information is designated and
marked as being confidential in nature by the disclosing party at the time of
disclosure to the receiving party and provided further that such information, if
disclosed orally, is reduced to writing, marked as being confidential, and
delivered to the receiving party within thirty (30) days after such disclosure.
Such Confidential Information may be disclosed only to employees of the
receiving party who

                                 Page 12 of 21
<PAGE>   13

Tessera Confidential

have a specific need to know such information for the purpose of the disclosing
party. Notwithstanding the foregoing provisions of this Paragraph:

              1. The receiving party's obligation with respect to keeping
information confidential shall terminate with respect to any part of such
information which appears in issued patents or printed publications or which
ceases to be confidential or enters the public domain through no fault of the
receiving party;

              2. The receiving party shall not be precluded from disclosing or
making any use whatsoever of any information which it can show was in its
possession prior to the disclosure made by the furnishing party or which
subsequently lawfully came into the receiving party's possession through
channels independent of the furnishing party or which was developed by the
receiving party completely independent of information provided to receiving
party hereunder;

              3. For the purpose of keeping information confidential the
receiving party shall use efforts commensurate with those which it employs for
the protection of corresponding information of its own, but not less than a
reasonable degree of care to prevent unauthorized use, disclosure,
dissemination, or publication of information transferred hereunder;

              4. The receiving party shall not be liable for any disclosure
resulting from the sale of any product or component; and

              5. The receiving party may disclose confidential information of
the party to the receiving party's Suppliers or vendors where necessary for the
manufacture, use or sale of products by the receiving party, as provided for in
Paragraph IX (Supplier).

       B. The parties hereto shall consult with each other from time to time and
mutually approve promotional materials, including samples, technical data, or
otherwise containing any proprietary and/or confidential information of the
parties, for disclosure to customers by either party or jointly under a mutually
agreeable and reciprocal non-disclosure agreement. Notwithstanding the parties'
obligations hereunder with respect to timely reports and/or disclosures to the
other containing confidential information, breach of this Paragraph XIV by
either party shall be deemed sufficient cause for the other party to terminate
any further obligation to make confidential disclosures to the breaching party
without limiting any other remedy at law. If such a breach occurs, the
non-breaching party shall send a written notification to the breaching party.
The breaching party will then have fifteen (15) days from the mailing date of
the notification within which to mitigate the effects of the wrongful disclosure
amounting to a breach hereunder. If such actions are sufficient to mitigate the
effects of the wrongful disclosure, the obligation of the Non-breaching party to
make confidential disclosures shall resume.

       XV.    INDEMNITY:

       A. Licensee agrees to defend, indemnify and hold Tessera harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorneys' fees and expenses) arising out of or related to
Licensee's use of Technology or Technical Information.

                                 Page 13 of 21
<PAGE>   14

Tessera Confidential

Notwithstanding, Licensee shall not bear the obligation or expense of defending
the validity of any Tessera Patent. Tessera shall have sole control over and
bear the expense for so defending the validity of the Tessera Patents.

       B. Tessera agrees to defend, indemnify and hold Licensee harmless from
and against any and all damages, liabilities, costs and expenses (including
reasonable attorney's fees and expenses) arising out of or related to Tessera's
use of Licensee Improvements. Notwithstanding, Tessera shall not bear the
obligation or expense of defending the validity of any Licensee Patent. Licensee
shall have sole control over and bear the expense for so defending the validity
of the Licensee Patents.

       XVI.   MISCELLANEOUS:

       The following additional terms shall apply to this Agreement:

       A. Governing Law. This Agreement shall be governed, interpreted and
construed in accordance with the laws of the State of California, irrespective
of choice of laws provisions. Both parties shall use their best efforts to
resolve by mutual agreement any disputes, controversies, claims or difference
which may arise from, under, out of or in connection with this Agreement. If
such disputes, controversies, claims or differences cannot be settled between
the parties, any litigation between the parties relating to this Agreement shall
take place in San Jose, California. The parties hereby consent to personal
jurisdiction and venue in the state and federal courts of California.

       B. No Waiver. Any waiver, express or implied, by either of the parties
hereto of any right hereunder or default by the other party, shall not
constitute or be deemed a continuing waiver or a waiver of any other right or
default. No failure or delay on either party in the exercise of any right or
privilege hereunder shall operate as waiver thereof, nor shall any single or
partial exercise of such right or privilege preclude other or further exercise
thereof or any other right or privilege.

       C. Equitable Relief. Nothing herein shall preclude either party from
taking whatever actions are necessary to prevent immediate, irreparable harm to
its interests. Otherwise, these procedures are exclusive and shall be fully
exhausted prior to the initiation of any litigation.

       D. Notices. All notices, required documentation, and correspondence in
connection herewith shall be in the English language, shall be provided in
writing and shall be given by facsimile transmission or by registered or
certified letter to Tessera and Licensee at the addresses and facsimile numbers
set forth below:

<TABLE>
<S>                         <C>
               Tessera:     Tessera, Inc.
                            3099 Orchard Dr.
                            San Jose, California 95134
                            Facsimile No.: 408-894-0768
                            Attn.: Chief Executive Officer
</TABLE>

                                 Page 14 of 21
<PAGE>   15

Tessera Confidential

          Licensee:        Samsung Electronics Co., Ltd.
                           San #24 Nongseo-Ri, Kiheung-Eup
                           Youngin- City, Kyungki-Do, KOREA
                           Facsimile: 82-2-760-6186
                           Attn.: Young-Bok Kim
                                  Senior Manager
                                  Technology Planning Group
                                  Semiconductor R&D Division

       Either Party may change its address and/or facsimile number by giving the
other party notice of such new address and/or facsimile number. All notices if
given or made by registered or certified letter shall be deemed to have been
received on the earlier of the date actually received and the date three days
after the same was posted and if given or made by facsimile transmission shall
be deemed to have been received at the time of dispatch, unless such date of
deemed receipt is not a business day, in which case the date of deemed receipt
shall be the next succeeding business day.

       E. Documentation Managers. Both Licensee and Tessera shall designate a
Documentation Manager to perform the task of logging and tracking the
confidential documents transferred between the companies. If possible, each
transfer of confidential information should be first transferred between the
respective Documentation Managers before disclosure in a meeting or via
mail/fax. If the information is first disclosed between representatives of the
parties, an effort should be made to send a copy of the disclosed information to
the receiving party's Documentation Manager along with the date of the
disclosure. Tessera's Documentation Manager is Christopher M. Pickett, Director
of Intellectual Property and may be contacted at the Tessera fax and street
address. Licensee's Documentation Manager is Han-Ki Kim, Manager and may be
contacted at Samsung Electronics Co., Ltd., San #24 Nongseo-Ri, Kiheung-Eup,
Youngin- City, Kyungki-Do, KOREA, Facsimile: 82-2-760-6186.

       F. Entire Understanding. This Agreement embodies the entire understanding
between the parties relating to the subject matter hereof, whether written or
oral, and there are no prior representations, warranties or agreements between
the parties not contained in this Agreement. Any amendment or modification of
any provision of this Agreement must be in writing, dated and signed by both
parties hereto.

       G. Invalidity. If any provision of this Agreement is declared invalid or
unenforceable by a court having competent jurisdiction, it is mutually agreed
that this Agreement shall endure except for the part declared invalid or
unenforceable by order of such court. The parties shall consult and use their
best efforts to agree upon a valid and enforceable provision which shall be a
reasonable substitute for such invalid or unenforceable provision in light of
the intent of this Agreement.

       H. Assignment. Neither party may assign this Agreement or any of its
rights or obligations hereunder without the prior written consent of the other
party except as otherwise provided elsewhere in this Agreement.

                                 Page 15 of 21
<PAGE>   16

Tessera Confidential

       I. Export Regulations. Both parties shall comply with the laws and
regulations of the government of the United States, and of any other country as
applicable relating to the export of commodities and technical data, any direct
product of such data, or any product received the other, to any proscribed
country listed in such laws and regulations unless properly authorized by the
appropriate government, and not knowingly export, or allow the export or
re-export of any Technology or Proprietary Information, or any system,
component, item, material or package made under or using the foregoing, in
violation of any restrictions, laws or regulations, or without all required
licenses and authorizations, to Afghanistan, the People's Republic of China or
any Group Q, S, W, Y or Z country specified in the then current Supplement No. 1
to Section 770 of the US Export Administration Regulations (or any successor
supplement or regulations).

       J. Section Headings. The headings and captions used herein shall not be
used to interpret or construe this Agreement.

       IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

TESSERA, INC.                           SAMSUNG ELECTRONICS CO., LTD.

By: /s/ JOHN W. SMITH                   By: /s/ SEYONG OH
   --------------------------------        -------------------------------------

Print Name: John W. Smith               Print Name: Seyong Oh
           ------------------------                -----------------------------

Title: President                        Title: Director
      -----------------------------           ----------------------------------

Date: 5-12-97                           Date: 5-17-97
     ------------------------------          -----------------------------------

                                 Page 16 of 21<PAGE>   1
                                                                   EXHIBIT 10.17

TESSERA CONFIDENTIAL

                               FIRST ADDENDUM TO
                         LIMITED TCC LICENSE AGREEMENT

This First Addendum is entered into as of this 4th day of November, 1998 ("First
Addendum Effective Date") between TESSERA INC., a corporation organized under
the laws of Delaware ("Tessera") and SAMSUNG ELECTRONICS CO., LTD., a
corporation organized under the laws of Republic of Korea having a principal
place of business at 250 Taepyung-Ro, 2 Ga, Chung-Ku, Seoul, Korea ("Licensee")
and modifies the Limited TCC License Agreement entered into by and between the
parties having an Effective Date of May 17, 1997 ("Agreement"), with reference
to the following facts:

       I.     SUPPLEMENT TO THE AGREEMENT. This First Addendum merely
supplements certain provisions of the Agreement. All provisions contained within
the Agreement are therefore incorporated herein. In the event any of the
provisions of the Agreement and this First Addendum conflict, the provisions
contained in this First Addendum shall supersede the conflicting provisions.

       II.    ROYALTIES

       A.     ROYALTY ADJUSTMENTS. In making the royalty payments due Tessera,
Licensee may [*]. However, if at any time [*], as set forth in the Agreement and
this First Addendum. Before a Royalty Adjustment can be so [*], Licensee must
have originally [*]. All Royalty Adjustments must be specified with the
information set forth in Addendum Attachment A.

       III.   LICENSEE REPORTS AND PAYMENT

       A.     Quarterly Royalty Payments. Beginning with the first royalty
payment due Tessera from Licensee after the First Addendum Effective Date,
royalties shall be calculated and paid in full in quarter annual payment periods
ending March 31, June 30, September 30 and December 31 of each year. Beginning
with the first such royalty payment, Licensee shall deliver a written report (as
shown in Addendum Attachment A) within twenty (20) days from the last day of
each quarter annual payment period describing the basis upon and containing the
information sufficient to determine the royalties due Tessera for the applicable
payment period (by facsimile, with an original by mail courier). Tessera shall
then invoice Licensee (by facsimile, with an original by mail courier) for the
royalties due Tessera as set forth in each such Licensee written royalty report.
Licensee shall then have thirty (30) days from first receipt of Tessera's
invoice to pay the royalties due under Tessera's invoice. All payments under
this Paragraph shall be made in US Dollars by wire transfer to Union Bank of
California, 99 Almaden Blvd., San Jose, CA 95113, Account Name: Tessera, Account
No.: 6450148359, Routing No. 122000496, International Swift Code: UBLAUS66, or
such other bank or account as Tessera may from time to time designate in
writing. The payments of royalties shall be considered to be made as of the day
on which such payments are received in Tessera's designated bank account.

       IV.    JOINT MARKETING

       A.     Monetary Commitment. Within thirty (30) days of Licensee's
prepayment of the [*] US DOLLAR (US$[*]) royalty buy-down payment applicable to
the Volume Adjustment in Paragraph III.C of the Agreement, Tessera shall PAY
LICENSEE [*]

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

                                  Page 1 of 3
<PAGE>   2

TESSERA CONFIDENTIAL

[*] US DOLLARS (US $[*]) to be used by Licensee exclusively for the joint
marketing of Licensee's ICs packaged in a royalty bearing TCC package format, as
further set forth in this Paragraph IV. Tessera shall also [*] US DOLLARS (US
$[*]) towards such joint marketing effort.

       B.     Marketing Efforts. Only those marketing efforts that are executed
to the strategic marketing plan set forth in this Paragraph IV.D will be counted
towards satisfying each party's monetary obligation to market Licensee's IC's
packaged in a royalty bearing TCC package format, as set forth in Paragraph
IV.A. The joint marketing effort may include: (1) press conferences, in Asia,
Europe and the United States; (2) user group conferences to teach the benefits
of TCC packages for Samsung IC's; (3) advertising in major IC and packaging
magazines in Asia, Europe and the United States specifically listing both
Tessera and Licensee in each advertisement; or (4) direct customer marketing to
end-user customers, commonly known as "OEM's", e.g. for personal computer DRAM
applications such customers would be Intel, Dell, Compaq, Acer and other printed
circuit board/computer OEM manufacturers.

       C.     Expenses. In addition to the expenses required for the marketing
efforts set forth in Paragraph IV.B above, travel expenses for airline flights,
hotel rooms and food costs are expensable against each party's monetary
obligation to market Licensee's IC's packaged in a royalty bearing TCC package
format (as set forth in Paragraph IV.A.) so long as each such expense is
verified by a third party receipt. International airline flights may be business
class for employees at a director level and above, but must be coach class for
employees under a director level, e.g. engineers, administrative assistants,
etc. Airline flights for domestic travel within any country must be coach class
for all travelers.

       D.     Timeline. Tessera and Licensee agree to meet (at a mutually agreed
upon location) and develop a strategic marketing plan for executing the intent
of this Paragraph IV within forty-five (45) days of execution of this First
Addendum. Tessera and Licensee further agree that the joint marketing
obligations under this Paragraph IV will be completely satisfied within one (1)
year of the First Addendum Effective Date or an alternate time line to be agreed
upon by the parties in a writing signed and dated by both parties.

       V.     ENTIRE UNDERSTANDING. This First Addendum embodies the entire
understanding between the parties relating to the subject matter hereof, whether
written or oral, and there are no prior representations, warranties or
agreements (except those specifically set forth in the Agreement) between the
parties not contained in this First Addendum. Any amendment or modification of
any provision of this First Addendum must be in writing, dated and signed by
both parties hereto.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

For TESSERA INC.:                           For SAMSUNG ELECTRONICS CO., LTD.:

By:  /s/  JOHN W. SMITH                     By:  /s/ HYUNG KYU LIM
   -----------------------------------         ---------------------------------
Name: John W. Smith                         Name: Hyung Kyu Lim
     ---------------------------------           -------------------------------
Title:       President & CEO                Title:      Sr. Vice President
      --------------------------------            ------------------------------
Date:    11/4/98                            Date:    11/9/98
     ---------------------------------           -------------------------------

* Certain information on this page has been omitted and filed
  separately with the Commission. Confidential treatment has
  been requested with respect to the omitted portions.

                                  Page 2 of 3

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