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Invensas Wins German Patent Infringement Cases Against Broadcom

Invensas Corporation (“Invensas” or “the Company”), announced today that it has prevailed in two German patent infringement actions against Broadcom Ltd. and certain of its subsidiaries and distributors. Invensas is a subsidiary of Xperi Corporation (Nasdaq:XPER). On March 17, 2017, the District Court of Mannheim issued a judgment in each of the cases finding that Broadcom, Ltd., Broadcom Corporation, and Broadcom Germany GmbH (collectively “Broadcom”), as well as its German distributors Mouser Electronics Inc., EBV Elektronik GmbH & Co KG, and Arrow Central Europe GmbH, infringe the German designation of Invensas’ European Patent No. 1 186 034 B1 (the “’034 Patent”).

The Mannheim court enjoined Broadcom and the other defendants from offering, putting on the market, using, or importing (or possessing for such reasons) the infringing products in Germany. The court also ordered them to recall infringing products from the German market, to destroy or have destroyed infringing products in their possession in Germany, and to provide an accounting of their infringing activities. The patented technology relates to an interconnect structure for use in flip-chip semiconductor products. The enjoined products include Broadcom chips used in consumer products such as cell phones and other mobile devices, set-top boxes, routers, modems, and gateways, as well as Ethernet switches and other chips designed for data centers, enterprises, and cloud computing servers.

“The court confirmed that Broadcom is infringing our intellectual property, and rejected Broadcom’s arguments that it does not infringe,” said Paul Davis, the Company’s senior vice president and general counsel. “The court’s judgment validates the applicability of our intellectual property across multiple semiconductor segments,” he added. “While we remain willing to continue discussions and negotiate a fair and reasonable license agreement with Broadcom, if Broadcom continues to use our patented technology without authorization, we will take all measures at our disposal to enforce the court’s judgments.”

The court also refused the defendants’ request to stay the infringement cases pending the outcome of a Broadcom affiliate’s nullity action against the patent, which is scheduled for hearing in January 2018. Accordingly, the court’s judgments will become enforceable once they are served on Broadcom and the other defendants and bonds are posted, which the Company expects will occur within approximately one week. The defendants have the right to appeal the Mannheim court’s decisions.

The U.S. counterpart to the ‘034 Patent is at issue in proceedings filed by the Company and its affiliates Tessera Technologies, Inc., Tessera, Inc., and Tessera Advanced Technologies, Inc. against certain Broadcom affiliates and customers in the U.S. International Trade Commission and in the U.S. District Court for the District of Delaware. The Dutch designation of the same European patent is at issue in parallel proceedings in the Netherlands. The ITC trial is scheduled for March 27-31, 2017, and the Dutch trial is scheduled for November 3, 2017.

About Xperi Corporation’s Semiconductor and IP Licensing Business

Tessera and Invensas are subsidiaries of Xperi Corporation. Over the past 26 years, Tessera's research and development has led to significant innovations in semiconductor packaging technology, which has been widely licensed and is found in billions of electronic devices globally. Invensas develops next-generation semiconductor packaging and interconnect technologies for memory, mobile, computing and automotive applications. Through collaborative partnerships with world-class manufacturing companies and high-volume equipment and materials suppliers, Invensas licenses these technology solutions to original equipment manufacturers, original design manufacturers, integrated device manufacturers, fabless device suppliers, foundries and outsourced assembly and test providers, and supports the technology transfer at customer-designated sites. Additionally, Invensas’ low temperature wafer bonding technologies target the image sensor, DRAM, MEMS, RF and 2.5D logic markets.

Safe Harbor Statement

This press release contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause actual results to differ significantly from those projected, particularly with respect the Germany, ITC, and Delaware proceedings, and the applicability of the ‘034 patent or its U.S. counterpart to Broadcom, its distributors or customers. Material factors that may cause results to differ from the statements made include the plans or operations relating to the businesses of Xperi Corporation; market or industry conditions; changes in patent laws, regulation or enforcement, or other factors that might affect Xperi's ability to protect or realize the value of its intellectual property; the expiration of license agreements and the cessation of related royalty income; the failure, inability or refusal of licensees to pay royalties; initiation, delays, setbacks or losses relating to Xperi's intellectual property or intellectual property litigations, or invalidation or limitation of key patents; fluctuations in operating results due to the timing of new license agreements and royalties, or due to legal costs; the risk of a decline in demand for semiconductors and products utilizing our audio and imaging technologies; failure by the industry to use technologies covered by Xperi's patents; the expiration of Xperi's patents; Xperi's ability to successfully complete and integrate acquisitions of businesses; the risk of loss of, or decreases in production orders from, customers of acquired businesses; financial and regulatory risks associated with the international nature of Xperi's businesses; failure of Xperi's products to achieve technological feasibility or profitability; failure to successfully commercialize Xperi's products; changes in demand for the products of Xperi's customers; limited opportunities to license technologies due to high concentration in applicable markets for such technologies; the impact of competing technologies on the demand for Xperi's technologies; failure to realize the anticipated benefits of Xperi's recent acquisition of DTS, Inc., including as a result of integrating the business of DTS; pricing trends, including Xperi's ability to achieve economies of scale; the expected amount and timing of cost savings and operating synergies; and other developments in the markets that Xperi operates, as well as management's response to any of the aforementioned factors. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this release.

The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included herein and elsewhere, including the Risk Factors included in Xperi's recent reports on Form 10-K and Form 10-Q and other documents of Xperi on file with the Securities and Exchange Commission (the "SEC"). Xperi's SEC filings are available publicly on the SEC's website at www.sec.gov. Any forward-looking statements made or incorporated by reference herein are qualified in their entirety by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by Xperi will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Xperi or its business or operations. Except to the extent required by applicable law, Xperi undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

XPER-L

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