UPDATE 1-ITC stays Tessera patent lawsuit, shares plunge

Feb 26 (Reuters) - Tessera Technologies Inc (TSRA.O: Quote, Profile, Research, Stock Buzz) received an unfavorable ruling in a patent infringement case against chip makers Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz) and others, sending its shares to their lowest in more than three years.

An International Trade Commission judge stayed the company's patent infringement motion against Motorola Inc (MOT.N: Quote, Profile, Research, Stock Buzz), Freescale Semiconductor Inc, Qualcomm Inc (QCOM.O: Quote, Profile, Research, Stock Buzz) and others, pending a review by the U.S. Patent and Trademark Office.

Tessera, which licenses its chip packaging technology, said it will appeal the stay order.

The stay comes after the respondents filed a motion seeking to stop the ITC action in view of recent actions by the PTO related to the re-examination of three Tessera patents.

In the past week, the PTO rejected certain claims of three Tessera patents that are being asserted in pending legal actions, the company said in a statement.

Both Tessera and the ITC staff attorneys opposed the stay motion, in part because the re-examinations are not final and an issued patent is still presumed valid and enforceable during a re-examination proceeding.

Tessera's complaint was centered on computer chips used in mobile phones, computers and digital cameras that allegedly infringe its patents. It was seeking a ban on the importation of the infringing chips and products that contain them.

Shares of the company were down more than 29 percent at $25.88 in heavy late afternoon trade on Nasdaq. They touched a low of $22.15, their lowest is more than three years, earlier in the session. (Reporting by John Tilak in Bangalore; Editing by Himani Sarkar)