KLA-Tencor Corp. Settles Patent Litigation with Therma-Wave Inc., Acquires Phase Metrics

Electronic News, April 23, 2001

KLA-TENCOR CORP. AND THERMA-WAVE INC. HAVE SETTLED ALL patent litigation between them. As part of the settlement, both companies said they have agreed to suspend patent litigation between them for an undisclosed period of time. Under terms of the settlement, San Jose-based KLA (nasdaq: KLAC) has granted Fremont, Calif.-based Therma-Wave (nasdaq: TWAV) a license to use its U.S. patent No.4,899,055, titled "Thin Film Thickness Measuring Method." In exchange, Therma-Wave has granted KLA a license to use its U.S. patent No.5,596,406, "Sample Characteristic Analysis Utilizing Multi Wavelength And Multi Angle Polarization And Magnitude Change Detection," and U.S. Patent Nos. 5,798,837 and 5,900,939, both titled "Thin Film Optical Measurement System and Method With Calibrating Ellipsometer." Additionally, Therma-Wave has agreed to modify its products to avoid using certain technology patented by KLA-Tencor, the companies said. The settlement also resulted in a payment of an undisclosed sum to KLA-Tencor.

KLA-Tencor also recently announced that it had signed a definitive agreement to purchase Phase Metrics, a metrology toolmaker for the data storage industry. The acquisition, for an undisclosed sum, will be accounted for as a purchase and will be finalized no later than April 30, according to KLA-Tencor. Phase Metrics' tools and technologies will be combined with KLA-Tencor's existing data-storage inspection and metrology products to create a new corporate division focused exclusively on advanced data-storage technologies. Phase Metrics' headquarters are in San Diego, and the company has sales and support facilities in Korea, Japan, Malaysia, Singapore, Thailand and the United States, with an installed base of more than 4,200 testers worldwide.