Judge Denies Qualcomm's Request For Stay - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Judge Denies Qualcomm's Request For Stay

An ITC administrative law judge last year ruled that Qualcomm's cellular baseband chips infringe Broadcom's patents, related to power conservation in cell phones.

Broadcom, a chip manufacturer for wired and wireless communications, said on Friday that the U.S. International Trade Commission (ITC) has denied a request by Qualcomm for an emergency stay of the commission's ban on the import of some cell phones that use Qualcomm's chips.

An ITC administrative law judge last year ruled that Qualcomm's cellular baseband chips infringe Broadcom's patents, related to power conservation in cell phones. In May, a federal court jury in California awarded Broadcom damages of $19.6 million against Qualcomm for the infringed patents. Then earlier this month, the ITC ordered that certain Qualcomm chips, as well as future products like cell phones containing the chips that infringe Broadcom's patents, be barred from importation into the United States.

The ITC keeps out foreign-made goods the sale of which would be unfair to companies that have a domestic business in the U.S. It's an unfair practice to sell goods that infringe patens, explained Bruce Sunstein, an attorney at Bromberg & Sunstein LLP, in an interview.

"Qualcomm, which collects about $3 billion a year from licensing its own patent portfolio and itself uses the ITC as a forum against competitors, refuses to provide appropriate compensation for the use of [intellectual property]," said David Dull, Broadcom's senior VP and general counsel, in a statement. Broadcom claims that it had repeatedly asked Qualcomm to negotiate a resolution, but its efforts have been unsuccessful.

The Qualcomm chips and chipsets are used in connecting cell phones and other mobile devices to third-generation (3G) cellular networks for high-speed data access. Broadcom also makes 3G chips. "This is a fight over 3G royalties," said Sunstein. The ban affects phones sold by the major U.S. cellular carriers, including Verizon Wireless, AT&T, Sprint Nextel, and T-Mobile.

The fight is not over yet. Qualcomm still has a shot with the U.S. Court of Appeals for the Federal Circuit, which can reverse a lower court's ruling. But a settlement could come once Qualcomm and Broadcom reach a deal using terms that work for both. Sunstein said, "This is one event in a long-term struggle between these two companies."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
Register for InformationWeek Newsletters
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll