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Qualcomm Settles Patent Battle with Broadcom for $891 MIllion

Qualcomm Settles Patent Battle with Broadcom for $891 MIllion

Mobile technology giant Qualcomm has agreed to pay smaller competitor Broadcom some $891 million over four years to settle a series of long-running—and very bitter—technology patent disputes between the company. Under the deal, the companies will dismiss all patent litigation between them, and agree not to assert patents against each other’s chip products and selected other products and services; Broadcom will also withdraw its complaints to the European Commission and the Korea Fair Trade Commission over Qualcomm business practices.

In return, Qualcomm will pay $200 million to Broadcom in the current fiscal quarter, and a total of $891 million over four years. No payments are currently scheduled beyond the first.

One More Time: Broadcom Sues Qualcomm

One More Time: Broadcom Sues Qualcomm

It’s one of the tech world’s never-ending stories: infringement lawsuits between wireless chip makers Broadcom and Qualcomm. The two companies have been involved in protracted and bitter disputes over CDMA patents, with Broadcom even winning an injunction to keep infringing Qualcomm chipsets from being imported into the United States—an a judge recently ruled Qualcomm in contempt of that injunction. Now, Broadcom has filed a new suit against Qualcomm, alleging the company is using “exhausted” patents that are no longer enforceable under U.S. law to control post-sale use of particular wireless communications products—and that practice results in a double recovery of royalties and other frees to Qualcomm. According to Broadcom, the practice not only brings an undeserved windfall to Qualcomm,but also constitutes patent misuse since it harms the wireless industry and the greater consumer marketplace.

Qualcomm In Contempt of Broadcom Injunction

Qualcomm In Contempt of Broadcom Injunction

U.S. District Judge James Selna has found that telecommunications gear maker Qualcomm has violated an injunction by continuing to use and support WCDMA chips in its QChat walkie-talkie products that allegedly infringe on three Broadcom patents. Now, Qualcomm will have to pay Broadcom the gross profits from the sale of those devices, as well as attorneys’ fees from the contempt proceedings.

"Over the past two years, Qualcomm has been found to have infringed four Broadcom patents, abused the standards-setting process, and committed gross discovery misconduct, and now has been held in contempt of a court-ordered injunction," said Broadcom intellectual property VP David Rosmann, in a statement. "Qualcomm’s conduct demonstrates a startling lack of respect for its competitors’ intellectual property, industry standards-setting processes, and the courts."

Qualcomm Chip Ban Upheld

Qualcomm Chip Ban Upheld

The U.S. Court of Appeals for the Federal Circuit in Washington D.C. has let stand a lower court ruling that prevents Qualcomm from selling some of its 3G WCDMA wireless chips in the United States. The original injunction was handed down in early January and bars Qualcomm from selling or supporting wireless phone chips infringe on three Broadcom patents.

Qualcomm has been appealing the decision and the injunction; in the meantime, the company has been offering UMTS chip designs that don’t infringe on Broadcom technology. Qualcomm may also sell selected infringing chips under a “sunset” provision ending January 31, 2009, while paying royalties to Broadcom.

Qualcomm Says Non-Infringing Chips Ready

Qualcomm Says Non-Infringing Chips Ready

Mobile technology developer Qualcomm says that an injunction barring it from selling certain mobile phone chips found to be infringing on technology from Broadcom—as well as putting a mandatory “sunset” provision and royalty payment on others—will means a short-term hit, but the company has non-infringing chipsets ready to go and should be appearing in handsets by March of this year. And the company is examining all its legal options, including seeking a stay of the injunction and pursuing an outright appeal.

Broadcom Wins 3G Injunction vs. Qualcomm

The patent battle between chipmaker Broadcom and technology giant Qualcomm has taken a sudden turn: a federal judge has issued an injunction (PDF) that not only bars Qualcomm from selling wireless phone technology in the United States that infringes on three Broadcom patents, but Qualcomm is also enjoined from supporting existing products built using those technologies.

“We are very pleased with today’s ruling, which addresses Qualcomm’s improper use of our patented technology covering cellular chips and software for advanced consumer devices,” said Broadcom senior VP and general counsel David A. Dull, in a statement. “Broadcom should not have to compete against companies that use Broadcom’s own patented technology against us, and this injunction puts a stop to Qualcomm doing just that.”

Phone Makers May Import Qualcomm Chips

Phone Makers May Import Qualcomm Chips

Legal battles over patents are almost always long and complex, and the patent rift between chipmakers Broadcom and Qualcomm has taken another turn as Judge Haldane Mayer on the U.S. Court of Appeals for the Federal Circuit granted a stay in an exclusion order which banned companies from importing Qualcomm chips into the U.S. which have been found to infringe on Broadcom patents. The catch is who the judge granted the stay to: the phone makers LG, Samsung, T-Mobile, Kyocera, Sanyo Fisher, AT&T, and Motorola who incorporate Qualcomm’s chips into their phones. Qualcomm itself, however, is still barred from bringing the contested chips into the United States under a ban from the International Trade Commission.

Qualcomm Patent Decision Stands

Qualcomm Patent Decision StandsQualcomm is going to have to pay a licensing fee to its competitor Broadcom for a patent.   For several weeksQualcomm had been hoping that the Bush administration would come to its rescue and reverse a decision that would mean it had to pay the licensing fee. But the administration has let the decision,made in June by the United States International Trade Commission, stand.   It was felt that the decision could have a major impact on the cell phone industry,since it could lead to a ban on the importation of millions of new phones that use Broadcom’s power management technology. However, two major carriers, including Verizon, have reached deals with Broadcom.   San Diego-based Qualcomm makes chips for phones used by Verizon Wireless, Sprint and AT&T. Its argument is that the $6 a phone licensing fee demanded by Broadcom is excessive. Broadcom, whose home is inIrvine, California, said that Qualcomm was using its power management technology without paying royalties. A pending lawsuit was suspended to await a decision by the U.S. Trade Representative.   But Susan C. Schwab, U.S. Trade Representative, has upheld the ruling in Broadcom’s favour.   Qualcomm plans to appeal for anemergency stay of the ruling to the United States Circuit Court of Appeals for the District of Columbia.   “We’re obviously disappointed but not terribly surprised,”saidQualcomm’s general counsel Lou Lupin of the decision. Broadcom will seek an immediate enforcement of the ruling, which they claim will only affect 10% of phones, none of which are yet on themarket.

USITC Refuses to Halt Qualcomm Chip Ban

USITC Refuses to Halt Qualcomm Chip BanQualcomm is finding its options dwindling in the fight to be able to import phones bearing chips that infringe on another company’s patent.  Qualcomm had appealed to the U.S. International Trade Commission to put its June 7 ban on hold. Last Thursday the Commission refused. The order will become finalunless vetoed by July 6 by the U.S. Trade Representative. Qualcomm has lobbied the Bush administration for help, but without success so far. Now it has to hope fora stay from the appeals court.   At the heart of the matter is an order that stops Qualcomm importing phones it’s made containing chipsets that have been found to infringe the patent ofanother company, Broadcom. It only applies to 3G phones brought into the country after June 7, not raw chips not in handsets, or handsets the company wasimporting prior to the ban.   There’s a strong possibility that Qualcomm will have to reach some kind of agreement with Broadcom over the issue. Broadcom General Counsel David A. Dullsaid,   “Broadcom simply wants to be adequately compensated for the use of our intellectual property and to be able to compete fairly in the cellular markets.”   Qualcommisn’t the only one asking for a White House veto of the ban. The cellular industry association, CTIA, has also called for one, stating the ban wouldremove incentive for carriers to offer next-generation services.   The federal appeals court, where Qualcomm is testing the decision, has requested that the ITC respond by the end of June. Ifnone id forthcoming, it will ratchet up the pressure on Qualcomm to settle with Broadcom.   However, even then, all might not be lost. The White House has 60 days in which to veto the order.

Broadcom Delivers VoIP/Wi-Fi Chipset

Wi-Fi phones based on this chipset will offer consumers a cordless phone  replacement that can also support data applications such as web browsing,  email and instant messaging.  This solution is based on the convergence of  Broadcom’s award-winning 54g wireless LAN (Wi-Fi) and field-proven Voice  over Internet Protocol (VoIP) technologies.  When compared to similar  solutions, Broadcom’s Voice over wireless LAN (VoWLAN) chipset reduces major  chip count from four to two chips, and offers additional important features  such as quality of service (QoS) and security.
   
“Our research indicates the number of broadband IP telephony subscribers  will increase with a compound annual growth rate of 122 percent year-to-year  in the US from 2004 through 2008,” said Keith Nissen, Senior Analyst for In- Stat/MDR.  “By 2008, there will be approximately 75 million subscribers using  Wi-Fi-based voice services in the US, and over 145 million subscribers  worldwide.  Wi-Fi Phones will help drive the adoption of VoIP by enabling the  delivery of advanced VoIP services such as unified messaging and presence  directly to the handset.”
   
“There is a lot of discussion around ‘convergence’ in the industry.  With  its proven ability to integrate, Broadcom is bringing to the market a real  example of convergence that will enable a new class of phones,” said Robert A.  Rango, Group Vice President of Broadcom’s Mobile & Wireless Group. “As the  worldwide leader in Wi-Fi and an emerging leader in VoIP customer premises  equipment (CPE) solutions, it is a natural step forward for us to combine  these two technologies onto one platform for the development of wireless IP  phones.”

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