Future Infringers?????
posted on
Oct 10, 2006 09:09AM
Judge: Qualcomm infringed on Broadcom patent
But court rules that cell phone chip supplier is in the clear on two other Broadcom patents; Qualcom shares jump.
October 10 2006: 12:43 PM EDT
WASHINGTON (Reuters) -- An administrative judge on Tuesday ruled that Qualcomm Inc. had infringed a Broadcom Corp. patent in a case Broadcom filed at the U.S. International Trade Commission.
The judge determined that Qualcomm infringed on some of the claims in a Broadcom patent used in radio chips, which transmit calls wirelessly. Broadcom requested the commission impose a U.S. ban on the sale of Qualcomm chips used in cell phones with high-speed wireless Internet connections.
The judge determined that Qualcomm had not infringed two other Broadcom patents at issue in the case.
In heavy trading, Qualcomm (up $1.04 to $37.28, Charts) shares jumped nearly 3 percent on the news, while Broadcom (down $0.98 to $28.61, Charts) stock was down close to 3 percent in Nasdaq trading.
The determination by Administrative Law Judge Charles Bullock is subject to review by the full commission and could ultimately be appealed in federal court.
Qualcomm, the dominant supplier of chips for cell phones based on CDMA, the most widely used U.S. cellular technology, has also filed lawsuits against Broadcom.
The chairmen of both companies met with a mediator in a San Diego court last week but failed to reach a settlement and were ordered by the judge not to comment on the talks.
Broadcom is also part of a group of six big companies that complained last year to the European Commission about Qualcomm's competitive practices.
Broadcom had initially complained to the ITC about five patents but its complaints related to two of the patents were transferred to a court in San Diego.
Qualcomm also designs chips based on W-CMDA, a popular technology in Europe.
In total, Broadcom has accused Qualcomm of infringing on 18 of its patents, while Qualcomm has accused Broadcom of infringing on 10 Qualcomm patents.