Qualcomm says Broadcom ruling to hurt short-term
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Wireless chip supplier Qualcomm Inc   said on Wednesday it would be hurt in the short term  by a court injunction on the sale of chips infringing rival  Broadcom Corp's  patents, but it promised to have  alternative products in phones before the end of the quarter.
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By Jennifer Davies, The San Diego Union-Tribune  Dec. 12--In the latest round of an ongoing legal battle between the  wireless chip makers, the U.S. International Trade Commission ruled yesterday  that Qualcomm is infringing on a patent held by rival Broadcom.
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A federal judge Wednesday halted an import ban on mobile phones by Qualcomm Inc., a rare legal victory in a long-standing patent dispute with rival Broadcom Corp.
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Qualcomm Inc. QCOM.O may change the  way it recognizes royalties from its licensees, which would  reduce fourth-quarter pre-tax income by $298 million, the  company said on Friday.
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The Nasdaq fell 1 percent on Monday and the S&P extended earlier losses, as nervous investors bet chipmaker Qualcomm Inc.  would lose to rival Broadcom Corp.  in several legal disputes.
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The hit on Qualcomm from a patent suit it lost to rival Broadcom may be slashed because of an unrelated ruling that came down in August.In May, a jury in the U.S. District Court for the Southern District of California found that&#160;Qualcomm infringed three Broadcom patents&#160;and awarded Broadcom $19.6 million. The judge in that case, James Selna, said he would double the damages to more than $39 million because the jury found the infringement was wilful. The damage award isn&#39;t final because other issues in the case are still pending.On Monday, Selna tentatively overturned the double award because of a new standard for proving wilful infringement, said Broadcom attorney David Rosmann. Broadcom can either accept the $19.6 million in direct damages or pursue a new trial in which it would try to prove Qualcomm acted deliberately, he said. Judge Selna ruled any new trial would look at the whole case over again, he said.Broadcom hasn&#39;t decided which path to take, but its priority in the case is getting an injunction to stop Qualcomm from making, using or selling the chips, Rosmann said.&quot;The issue of the injunction is far more important to Broadcom than the damages,&quot; Rosmann said. &quot;We&#39;re hoping to move forward on the injunction as quickly as possible.&quot;In August, the U.S. Court of Appeals for the Federal Circuit upped the ante for patent owners that want to earn higher damages -- they can be as much as tripled -- by proving someone knew they were infringing a patent and did so anyway, according to patent attorney Smith Brittingham of Finnegan, Henderson, Farabow, Garrett &amp; Dunner.&quot;You have to show more comprehension of the situation than you would have had to in the past,&quot; Brittingham said. The Federal Circuit ruling, on a suit against hard-drive vendor Seagate Technology, automatically changed the standard in all federal courts, he said. The ruling could change other pending cases, he said.The new standard probably won&#39;t discourage patent suits among competitors like the Broadcom-Qualcomm dispute, but it may make litigation less attractive for patent-holding companies in the business of suing, Brittingham said.&quot;It&#39;s consistent with the view that ... maybe patent infringement cases have gotten too easy to win and have created an unnecessary drag on business,&quot; he said.Judge Selna asked Broadcom for a decision by the end of this week, Rosmann said. Qualcomm declined to comment on the substance of the case.The suit is one of several between Qualcomm and Broadcom, who are battling over the market for mobile-phone chips.
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(InfoWorld) - U.S. mobile users waiting for the next crop of phones could breathe a sigh of relief Wednesday when the U.S. Court of Appeals for the Federal Circuit granted a stay on an import ban against handsets that use some Qualcomm chips. The International Trade CommissionÂ (ITC) ordered the ban in JuneÂ after theÂ Qualcomm chips were found to infringe Broadcom patents. It only affected future models, not current imports. If imposed, it could affect handset makers including Motorola, Samsung Electronics, and others, whoÂ filed motions seeking the stay. The latest move lets those manufacturers bring in the new phone models while Qualcomm appeals the ITC's order and seeks a reversal of the patent-infringement ruling. The fight for the stay was considered an uphill battle. Smith Brittingham, a lawyer with Finnegan, Henderson, Farabow, Garrett & Dunner, said in June he could only remember one time when such a ruling had been stayed pending an appeal. âIt would be a significant victory for Qualcomm,â he said at the time. Last month theÂ Bush administration turned downÂ a request by Qualcomm to stop the ban. The stay affects the third-party companies that filed motions, which also include Kyocera Wireless, Sanyo Fisher, T-Mobile USA, LG Electronics MobileComm USA, and AT&T Mobility. The circuit court didn't grant a stay for Qualcomm's own imports, but Qualcomm does not itself import the chips found to infringe Broadcom's patents, according to a Qualcomm press release Wednesday. Broadcom went to the ITC seeking an import ban only against Qualcomm. The third parties and Qualcomm argued in the appeals court that the ITC didn't have the authority to exclude products imported by other companies. The court said the third parties had a substantial case and the harm they might suffer weighed in their favor, according to Qualcomm. Broadcom could not immediately be reached for comment. In July,Â Broadcom reached a deal with Verizon WirelessÂ that would let Verizon continue to import phones using the disputed technology. Under that deal, Verizon will pay Broadcom $6 for every handset, PDA (personal digital assistant) or data card that uses EV-DO (Evolution-Data Optimized) mobile broadband technology. The payments have a ceiling of $40 million per calendar quarter and a lifetime maximum of $200 million. As part of the deal, Verizon also will drop its effort to overturn the ruling. The patent fight is one of a series of intellectual-property disputes between mobile pioneer Qualcomm and Broadcom, a communications chip maker that has moved aggressively into the mobile arena. (Nancy Gohring in Seattle contributed to this story.) Â
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Wireless chip developer Qualcomm Inc.   said on Friday the U.S. District Court for New Jersey  has dismissed Broadcom Corp's  antitrust complaint  against Qualcomm in its entirety.
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The U.S. International Trade Commission has denied Qualcomm Inc.'s  request to stay an order banning imports of new phone models with Qualcomm chips the trade agency said infringe a Broadcom Corp.  patent, Broadcom said on Friday.
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Qualcomm Inc.&#39;s efforts to sell its mobile TV technology in Europe suffered a blow on Wednesday with the European Commission&#39;s indication that it will potentially forbid the use of the U.S. company&#39;s system.
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Last week, as we reported, Qualcomm's request for a stay of injunction against the sale of certain of its chips in the US was denied, and that denial was upheld by the International Trade Commission. This after the company was found to have infringed upon three Broadcom patents. At that time, Broadcom said it was open to seeking a negotiated settlement with Broadcom.
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Qualcomm Inc.  said on Tuesday that a U.S. federal jury had found it infringed three patents held by Broadcom Corp. in the latest of their ongoing legal disputes.
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A federal judge ruled that the wireless chip maker Qualcomm could sell through January 2009 some chips whose designs infringe patents held by the Broadcom Corporation.
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(InfoWorld) - A federal appeals court ruled Tuesday that Broadcom could press forward with an antitrust case against rival chip maker Qualcomm, but on only two of the eight original charges, the companies said. Broadcom says Qualcomm has created a monopoly in the market for wireless technology standards such as CDMA (code division multiple access). The decision by a group of three judges in the U.S. Court of Appeals for the Third Circuit reverses a verdict by a lower court to dismiss the entire case. In August 2006, a district court in New Jersey had approved Qualcomm's request to dismiss all eight charges. Last month, Qualcomm lost another round in the long-running battle, when the Bush administrationÂ decided not to block a banÂ imposed by the U.S. International Trade Commission on the domestic sale of mobile devices using certain Qualcomm chips. Broadcom says Qualcomm has infringed its patents on the communications chips used in cell phones. And in May, a federal court jury awarded Broadcom $19.6 million in damages after finding thatÂ Qualcomm had willfully infringed three of its patents. That chain of legal losses helped push Qualcomm's general counsel, Lou Lupin, to resign in August. When the case returns to the New Jersey court, Broadcom will argue that Qualcomm has failed to fairly license the technology for cellular wireless standards, and ask the judge to eliminate Qualcomm's patent royalties and pay triple damages and attorney's fees, according to a statement by Broadcom General Counsel David Dull. However, Qualcomm said that the appellate court judges had merely upheld the two remaining charges on a legal technicality, and vowed to vigorously dispute them in court. Neither Broadcom nor Qualcomm returned calls for comment. Â
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The U.S. International Trade  Commission has denied Qualcomm Inc.'s  request to stay  an order banning imports of new phone models with Qualcomm  chips the trade agency said infringe a Broadcom Corp.   patent, Broadcom said on Friday.
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The U.S. International Trade Commission ordered a ban on Thursday of some imported cell phone models containing Qualcomm Inc.  chips that infringe on a Broadcom Corp.  patent.
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Qualcomm is shipping four new wireless chip sets that do not infringe on a video encoding patent held by competitor Broadcom. Qualcomm expects the WCDMA (Wideband Code Division Multiple Access) handsets containing the chips to go on sale in the U.S. by April, it said Wednesday.The announcement comes two days after a&#160;U.S. federal judge issued an injunction&#160;that stops Qualcomm from selling some wireless chipsets found to infringe on the Broadcom patent.Under a special provision of the injunction, Qualcomm can continue to use Broadcom&#39;s patented technology in some existing QChat push-to-talk and 1xEV-DO (Evolution-Data Only) products through Jan. 31, 2009, as long as it pays royalties to Broadcom. New products, or existing products sold to new customers, are not covered by the automatic license.Qualcomm is still developing workarounds for&#160;infringing technology included in the QChat and 1xEV-DO products, it said.Broadcom won a patent infringement suit against Qualcomm&#160;in May and was awarded $19.6 million in damages. However, Broadcom said the injunction -- which only applies to chip sets sold in the U.S. -- was far more important than the money.Monday&#39;s injunction, issued in the U.S. District Court for the Southern District of California, also prohibits Qualcomm from some marketing and customer support activities related to WCDMA and EV-DO chips.Qualcomm said it still wants further clarification on some aspects of the injunction, saying it could affect the company&#39;s product development. The company said it is also considering filing an appeal or for a stay of the injunction.The two companies still have other patent infringement and antitrust claims pending.&#160;