A appeals court ruled in favor of Tessera Technologies Inc in a chip patent dispute with Qualcomm Inc , Spansion Inc , Freescale Semiconductor Inc , ATI Technologies and STMicroelectronics NV .

Shares of Tessera, a developer of technologies for wireless and other high-tech products, were up about 5 percent to $21.69 in Tuesday morning trading.

On Tuesday, the Court of Appeals for the Federal Circuit upheld a ruling by the U.S. International Trade Commission that the companies had infringed Tessera patents for methods to package semiconductors so they are protected inside portable devices.

In April 2007, Tessera asked the ITC, which hears patent cases involving imported goods, to block imports of certain chips, arguing that they infringed on its patents.

The ITC agreed that Tessera's patents were infringed.

It also issued an order to prohibit the importing of chips that infringe the Tessera patents and issued a cease and desist order to stop infringement.

Motorola, which had been part of the original suit, had previously reached a deal with Tessera to enter into a license to use the technology.

(Reporting by Diane Bartz; Editing by Lisa Von Ahn and Derek Caney)

Chip Patent