Peregrine Semi (PSMI) Files Another Patent Suit Against RF Micro Devices (RFMD); Analyst Notes 'Aggressive' Nature of Firm

March 26, 2013 5:03 PM EDT Send to a Friend
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After the close, Peregrine Semiconductor (NASDAQ: PSMI) announced that it has filed a new lawsuit in U.S. District Court alleging the infringement of Peregrine patented intellectual property relating to RFICs and switching technology by RF Micro Devices, Inc. (NYSE: RFMD).

The suit filed in U.S. District Court for the Southern District of California claims that certain RFMD products infringe a newly issued Peregrine patent relating to silicon-on-insulator (SOI) technology for RFICs. Peregrine seeks, in addition to damages, to permanently enjoin RFMD from further infringement. This new legal action is in addition to an existing lawsuit filed against RFMD in February 2012 and currently pending in U.S. District Court.

Commenting on the news, RBC Capital analyst Doug Freedman said: "PSMI is becoming more aggressive in litigation against RFMD. In our view, the potential here is significant if successful, but handicapping a victory or timing is near impossible. That said, we believe that the cost to the PSMI business model is justified and adds between $5M to $7M in annual OpEx."

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