Opinion ID: 217178
Heading Depth: 2
Heading Rank: 3

Heading: Tessera's Licensees

Text: Tessera's primary business is licensing its technology. Since the late 1990s, Tessera has licensed the patents-in-suit to more than sixty semiconductor technology companies, including nine of the ten largest. Tessera often licenses its patents to suppliers through agreements called TCC Licenses. While the terms of each TCC License vary from licensee to licensee, these TCC Licenses share several characteristics. Each TCC License calls for an upfront license fee along with running royalties to be paid at the end of a reporting period for products sold. Each TCC License also contains a grant clause substantially identical to the following: Subject to the terms and conditions [of this agreement], Tessera hereby grants Licensee a . . . license to the Tessera Patents . . . and to sell . . . and/or offer for sale such TCC Licensed Products. Appellant's Br. 56. Finally, each also contains an Exclusion from License provision stating that Licensee is licensed only to Licensed Products for which Licensee or a third party has satisfied a royalty obligation of Tessera. Id. at 57. All of the intervenors purchase some portion of their accused packages from parties to the TCC Licenses. Elpida asserts, and the Commission agreed, that 100% of its products came from Tessera licensees. The remaining intervenors concede that at least a small portion of their accused products are made from unlicensed suppliers. It is undisputed that some licensees had fallen behind on their obligations to pay royalties on sales made under the TCC Licenses.