Xperi Receives Favorable Decision at ITC

SAN JOSE, Calif.--(BUSINESS WIRE)--Rovi Guides, Inc. (“Rovi”), a subsidiary of Xperi Holding Corporation (NASDAQ: XPER) (“Xperi”), announced today that it received a favorable initial determination (“ID”) issued today by Administrative Law Judge MaryJoan McNamara of the International Trade Commission (“ITC”) finding that Comcast’s X1 platform infringes on two Rovi patents and recommends the issuance of a limited exclusion order and cease and desist order.

The patents at issue in the order cover innovations generally relating to multi-room DVR and communication between multiple set-top boxes using MoCA technology. These patents are just a few of approximately 11,000 Xperi patents and applications broadly licensed across its platform to companies in the media and semiconductor markets.

“We are pleased with this decision, which is now our third favorable decision at the ITC against Comcast. While the decision represents a positive and key milestone in our litigation, our ultimate goal remains to ensure that we receive fair value for our innovations and that we reach a mutually acceptable agreement with Comcast to allow the ongoing use of Rovi patented technology, just as we have done broadly with the other major US Pay-TV providers,” said Samir Armaly, Xperi’s president of IP licensing. “Notably, even while being in litigation over the past few years, our IP business has continued to successfully license, renew or extend licensing agreements across the industry.”

The full ID is subject to confidentiality restrictions. Thus, no further details on the substance of the decision, including details about the scope of the ALJ’s infringement finding, are available at this time though we may provide a further update as more information becomes available.

The ID is now subject to review by the Commissioners at the ITC. Any remedies, including a limited exclusion order, would not issue until after the completion of the investigation, which at this time is scheduled for November 30, 2020.

Background Information

On June 1, 2020, the merger of Xperi Corporation and TiVo Corporation was completed, forming a unique digital entertainment technology platform and one of the industry’s largest and most diverse intellectual property (IP) licensing platforms.

The combined company will continue to invest in advanced technologies that bring new and exciting inventions to its licensing customers. With a shared track record of creating value through intellectual property licensing, the combined IP portfolio spans more than 11,000 patents and applications, with recurring subscriber-based IP revenue providing important stability and diversification for the business.

The scale achieved through the combined company will also enable the combined company to invent, develop and deliver technologies that enable extraordinary experiences, ultimately making entertainment more entertaining and smart devices even smarter for tens of millions of individual consumers.

About Xperi Holding Corporation

Xperi invents, develops, and delivers technologies that enable extraordinary experiences. Xperi technologies, delivered via its brands (DTS, HD Radio, IMAX Enhanced, Invensas, TiVo), and by its startup, Perceive, make entertainment more entertaining, and smart devices smarter. Xperi technologies are integrated into billions of consumer devices, media platforms, and semiconductors worldwide, driving increased value for partners, customers and consumers.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Xperi’s current expectations, estimates and projections about the potential benefits of the ITC initial determination, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the anticipated benefits of the transaction. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, cost savings, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of Xperi’s businesses; failure to realize the anticipated benefits of the recent merger with TiVo; Xperi’s ability to implement its business strategy; pricing trends, including Xperi’s ability to achieve economies of scale; the ability of Xperi to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the merger with TiVo; uncertainty as to the long-term value of Xperi common stock; legislative, regulatory and economic developments affecting Xperi’s business; general economic and market developments and conditions; the evolving legal, regulatory and tax regimes under which Xperi operates; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters, the outbreak of coronavirus (COVID-19) or similar outbreaks or pandemics, and their effects on economic and business environments in which Xperi operates, as well as Xperi’s response to any of the aforementioned factors; the extent to which the COVID-19 pandemic continues to have an adverse impact on our business, results of operations, and financial condition will depend on future developments, including measures taken in response to the pandemic, which are highly uncertain and cannot be predicted; and any plans regarding a potential separation of the combined business. These risks, as well as other risks associated with the transaction, are more fully discussed in Xperi’s filings with the U.S. Securities and Exchange Commission (“SEC”). While the list of factors presented here is, and the list of factors presented in Xperi’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on Xperi’s consolidated financial condition, results of operations, or liquidity. Xperi does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

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