Injunction prohibits Qualcomm's infringement
on Broadcom patents
Posted: 01-Jan-2008 [Source: Broadcom]
[Federal judge issues injunction against
Qualcomm's infringement of three Broadcom
patents covering cellular chips and software for
advanced consumer devices.]
Irvine, CA --
Broadcom Corporation, a global leader in
semiconductors for wired and wireless
communications, announced that a federal judge
today issued an injunction against Qualcomm
Incorporated's continued infringement of three
Broadcom patents.
"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
David A. Dull, Broadcom's Senior Vice President
and General Counsel. "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."
As ordered by U.S. District Court Judge James
V. Selna, the injunction prohibits Qualcomm from
making, using and selling certain chipsets and
software that infringe the three Broadcom
patents. The injunction, effective today, also
prohibits Qualcomm from engaging in a broad
range of additional activities. According to the
terms of the injunction, Qualcomm is prohibited,
for example, from advertising, marketing or
otherwise promoting; entering or fulfilling
product orders; setting, determining or
approving terms of sale; providing customer
service or technical support; negotiating or
entering into licensing, representative,
reseller or distributor agreements; developing,
designing or manufacturing; writing, modifying
or updating software; developing or modifying
circuits; writing, modifying or updating
hardware description code language; or taping
out or preparing documentati! on for, infringing
products.
The Infringed Patents
Broadcom's U.S. Patent No. 6,847,686
Under the terms of the injunction, Qualcomm
is prohibited from making, using, selling,
offering for sale, and importing so-called third
generation (3G) WCDMA and EV-DO chips in its
"Enhanced Multimedia" and "Convergence"
platforms, and from developing new WCDMA and EV-DO
chips that use Broadcom's patented video
processing chip architecture. Sales of
infringing WCDMA chips and new infringing EV-DO
chips are enjoined outright, effective
immediately. Provided that Qualcomm pays
Broadcom a royalty of 6% of all revenues
Qualcomm received and receives for sales of
infringing EV-DO chips occurring after May 29,
2007, Qualcomm may continue to sell infringing
legacy EV-DO chips to legacy customers of those
products during the period between May 29, 2007
and January 31, 2009 only.
Broadcom's U.S. Patent No. 5,657,317
The injunction also prohibits Qualcomm from
making, using, selling, offering for sale, and
importing EV-DO chips found to infringe
Broadcom's patent, and from developing new EV-DO
chips using Broadcom's patented simultaneous
network access technology, which allows a phone
to participate on two or more networks
concurrently. Sales of new infringing EV-DO
chips are enjoined outright, effective
immediately. Provided that Qualcomm pays
Broadcom a royalty of 4.5% of all revenues
Qualcomm received and receives for sales and
imports of infringing phones in the U.S.
occurring after May 29, 2007, Qualcomm may
continue to sell infringing legacy EV-DO chips
to legacy customers of those products during the
period between May 29, 2007 and January 31, 2009
only.
Broadcom's U.S. Patent No. 6,389,010
Finally, the injunction prohibits Qualcomm
from making, using, selling, offering for sale,
and importing infringing cellular devices using
its QChat "push-to-talk" software, and from
developing new push-to-talk software that
infringes Broadcom's patented network selection
technology. Sales of new infringing QChat
devices are enj! oined ou tright, effective
immediately. Provided that Qualcomm pays
Broadcom a royalty, in an amount to be
determined, of all revenues Qualcomm received
and receives for sales and imports of infringing
QChat devices occurring after May 29, 2007,
Qualcomm may continue to sell infringing legacy
QChat devices to legacy customers of those
products during the period between May 29, 2007
and January 31, 2009 only.
Broadcom filed the case in District Court in
Santa Ana, Calif., in May 2005. On May 29, 2007,
a unanimous jury returned a verdict finding that
Qualcomm infringed three Broadcom patents and
awarded $19.64 million in damages for past
infringement.
Judge Selna's order may be accessed at
http://www.broadcom.com/1231_injunction.
Other Litigation against Qualcomm
The Santa Ana case is one of several cases in
which Broadcom continues to pursue claims
against Qualcomm regarding patent infringement,
anti-competitive behavior and fraud issues.
Qualcomm has either lost or withdrawn all of the
patent infringement cases it brought against
Broadcom.
Patent Infringement Cases
In addition to the Santa Ana case, the U.S.
International Trade Commission ruled earlier
this year to ban the importation into the U.S.
of new phone models containing infringing
Qualcomm chips, along with the chips themselves.
On September 12, the U.S. Court of Appeals for
the Federal Circuit denied Qualcomm's request to
stay the effectiveness pending appeal of the
ITC's exclusion order that stops the importation
into the United States of Qualcomm chips that
infringe a Broadcom patent. The Federal Circuit
did grant a stay pending appeal as to other
parties whose cellular phones containing
Qualcomm's infringing chips had been excluded.
The Appeals Court made no findings questioning
the validity of the patent or its infringement
by Qualcomm. Earlier this month, the ITC said it
would investigate charges that Qualcomm was
violating the agency's order to cease and desist
infringing Broadcom's patent.
-- In a separate case in San Diego, Calif., a
unanimous federal jury found that Broadcom had
not infringed two Qualcomm patents, and the
judge in the case subsequently found that
Qualcomm engaged in "aggravated litigation
misconduct" and "intentional abuse of industry
standards bodies" in the case. In October, a
U.S. District Court Magistrate Judge held a
hearing to address the issue of sanctions
related to that misconduct. A decision has not
yet issued.
Anticompetition Cases
-- In July 2005, Broadcom filed a complaint
in New Jersey district court alleging that
Qualcomm has violated U.S. antitrust laws by,
among other things, encouraging standards bodies
to incorporate Qualcomm patented technology into
cell phone standar! ds by pr omising to license
those patents on fair, reasonable and
non-discriminatory terms, and then reneging on
those promises. In August, the U.S. Court of
Appeals for the Third Circuit reversed a lower
court's dismissal of Broadcom's claims, allowing
the antitrust case to go forward. A tentative
trial date has been set for June 2009. -- In
October 2005, Broadcom joined five other leading
mobile wireless technology companies in filing
complaints with the European Commission alleging
that Qualcomm has engaged in anticompetitive
conduct in the licensing of its patents and the
sale of its chipsets for mobile wireless devices
and systems. The six companies assert that
Qualcomm is violating EU competition law and
failing to meet the commitments it made to
international standards bodies to license its
technology on fair, reasonable and
non-discriminatory terms. The European
Commission embarked on a preliminary review of
the complaints, and on Oct. 1, 2007 announced
its intent to allocate priority to its
continuing investigation. -- Broadcom and
another wireless technology company have filed
complaints similar to those filed in with
European Commission before the Korean Fair Trade
Commission. |