Qualcomm to ring up more CDMA royalties
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The merger between Sprint and Nextel is not only a boon for the two cell phone companies but also for San Diego wireless giant Qualcomm.
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(InfoWorld) - BroadcomÂ and Verizon Wireless have reached a deal that will allow Verizon to continue importing and selling phones that are the subject of continuing litigation between Broadcom and Qualcomm. On June 7, the U.S. International Trade Commission (ITC)Â banned the importation of new models of phones and PDAs that hit the market after that day and include certain Qualcomm chips. Broadcom had sued the rival mobile chip vendor over alleged patent infringement. Under a licensing agreement, Verizon will pay Broadcom $6 for every handset, PDA, or data card that uses EvDO (Evolution-Data Optimized) mobile broadband technology. The carrier will make the payments up to a ceiling of $40 million per calendar quarter and a lifetime maximum of $200 million. As part of the deal, Verizon also will drop an effort to overturn the ruling. Other terms are confidential, according to a statement released by the two companies. The move is a blow to Qualcomm, which pioneered the CDMAÂ technology on which EvDO is based. Verizon is the largest carrier in the U.S. using EvDO. It will pay Broadcom to license technology that Qualcomm has argued does not belong to Broadcom in the first place. Qualcomm was not immediately available for comment. In addition to the licensing deal, Broadcom has entered a strategic alliance with Verizon Communications, the parent company of Verizon Wireless. That deal covers new mobile device chipsets as well as Bluetooth, wireless LAN, optical network, GPS, DSL, fiber, set-top box, and home network equipment components. Broadcom, in Irvine, California, makes chips for a wide range of wired and wireless network products. Qualcomm, in nearby San Diego, is focused on wireless technology. Qualcomm said last month it would try to convince President George Bush to overturn the June 7 ruling, which was effective immediately. Bush has 60 days to decide whether to take action. If he doesn't, Qualcomm could appeal the ruling in federal court. The June 7 ruling came after the ITC ruled last year that Qualcomm had infringed on a Broadcom patent for power management technology. Broadcom had said the system is used in essentially all EvDO and Wideband CDMA phones.
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Qualcomm announced yesterday that Siemens Communications, the world&#39;s fourth largest maker of cell phones, has agreed to use its chips in some of its handsets.
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WASHINGTON (CBS.MW) -- Qualcomm on Friday said it may have to reduce this year&#39;s revenue by $298 million because of the way it accounts for royalty payments.
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Qualcomm Inc. 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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Shares fall as the company says it may end royalty estimates and count them only when received. NEW YORK  - Qualcomm Inc.
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Investor's Business Daily - When it comes to making CDMA chips for cell phones, Qualcomm is king. But as a new generation of phones hits the market, the company may struggle to keep its reign.
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Qualcomm Inc.  may change the way it recognizes royalties from its licensees, which would reduce fourth-quarter pre-tax income by &#36;298 million, the company said on Friday.
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Qualcomm Incorporated, pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, on October 1 announced the opening of a research and development (R&amp;D) center in Hyderabad, India.
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Wireless chip maker Qualcomm Inc.   said on Wednesday new chipsets, designed to comply  with a court's patent infringement ruling, were now available  and expected to be in handsets before the end of March.
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InfoWorld - Ongoing legal disputes over mobile phone patents between Nokia and Qualcomm are consuming much executive management time, generating substantial lawyer fees, and, if they escalate, could affect handset development and prices, experts warn.
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Code Division Multiple Access (CDMA) technology major Qualcomm Inc on Friday announced the opening of a research and development (R&amp;D) in Hyderabad, to support its chipset development activities.
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Mobile multimedia content will get its own nationwide network in the US by 2006 if an $800m (Â£435m) project by Qualcomm goes according to plan.
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Ongoing legal disputes over mobile phone patents between Nokia and Qualcomm are consuming much executive management time, generating substantial lawyer fees, and, if they escalate, could affect handset development and prices, experts warn.
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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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Qualcomm plans to study whether to change its accounting practices to reflect the growing size and volatility of the mobile communications market.
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RF Micro Devices Inc., which makes chips for cell phones and wireless networking devices, has agreed to sell its Bluetooth assets for $39 million in cash to Qualcomm Inc., the company announced early Monday.