Patent Ruling Could Ban New Phones

A patent infringement ruling against Qualcomm means that new handsets from Motorola and Samsung could be banned.

Got your eye on one of the upcoming handsets from Motorola or Samsung? Then you might have to wait for a while.   Apatent row could cause the U.S. International Trade Commission to ban the import of phones made using Qualcommsemiconductors. The Commission ruled yesterday that Qualcomm had violated a patent held by Broadcom, another semiconductor company.   The ruling is alsolikely to affect providers like Verizon and Sprint, among others, who rely on the handsets.   The disputeinvolves a patent used in the chip design of third-generation, or 3G, phones, which the industry is relying on to drive sales.   “We believe the commission has overstepped its statutoryboundaries and has not afforded due process to manufacturers and operators,” said Qualcomm chief executive Paul Jacobs.   The company plans to immediately appeal the ruling in federalcourt, asking that it be blocked. Additionally, Qualcomm plans a direct appeal to President Bush, in the hope that his trade representative, Susan C. Schwab, will veto the ruling.   Qualcomm cancontinue to ship models that already are on the market as of June 7, regardless of whether they use the patented technology. The company has told investors that it’s in negotiation withBroadcom to establish royalty rates for the technology, but the current rates are prohibitive. Industry analysts expect that the companies will achieve a breakthrough on talks or Qualcomm will find atechnological fix to the problem.   Last week Broadcom won a court case against Qualcomm over other patent infringements, and had also sued over the patent involved in the I.T.C. ruling,although the case had been delayed pending the ruling.