Sasken shares up 20% as it wins $31.7 million in arbitration case

BANGALORE: Sasken Communication Technologies has been awarded $31.7 million (about Rs 190 crore) in arbitration for Spredtrum’s failure to pay royalties for using Sasken’s IP in a joint development project.

Sasken's annual revenue in fiscal 2014 was Rs 458 crore .

Spreadtrum has been directed by American Arbitration Association’s International Centre for Dispute Resolution to pay the amount within 30 days, towards royalties and interest on unpaid royalties. Further the Arbitrator has directed Spreadtrum to continue to provide royalty reports and pay the contracted royalties on an ongoing basis.

“We are delighted with the award, which we believe is fair and balanced. This reaffirms our faith in the judicial system,” said Neeta Revankar, Whole-time Director and CFO.

In December 2012, Sasken approached American Arbitration Association’s International Centre for Dispute Resolution (“AAA”) over non-payment of royalties, which was contractually agreed by Spreadtrum for the software/IP licensed by Sasken as part of the joint development project undertaken by both the parties.

Spreadtrum failed to meet the above, and other obligations to Sasken, a decision that resulted in arbitration filed by Sasken before the American Arbitration Association’s International Centre for Dispute Resolution.

Sasken stock hit 20% upper circuit post the announcement, touching its 6 year high of Rs 265.