ITC Denies Qualcomm Request To Stay Order
Broadcom said the International Trade Commission denied rival Qualcomm's request to stay the agency's ban on the import of new models of advanced cell phones containing chips from Qualcomm.
The announcement comes two weeks after the ITC imposed a partial ban on the imports of third-generation, or 3G, cellular phones using Qualcomm's microchips in a ruling over a patent dispute between the company and Broadcom.
The decision meant that all the major cellular phone handset makers using Qualcomm's microchips in their 3G phones could no longer be able to import new models of their phones into the U.S after June 7. New phones that are of the same model as those manufactured before June 7 will still be allowed into the country.
Before its June 7 ruling, the ITC, which is an independent arm of the U.S. federal government, had previously determined that San Diego-based Qualcomm was in violation of a patent held by Broadcom, which is based in Irvine, Calif. The patent in question is for a device that lengthens the life of cell-phone batteries.
Qualcomm, which is facing a series of legal battles, said after the ITC's June 7 ruling it believed the commission "has overstepped its statutory boundaries." The company added it didn't expect the ban to have an impact on earnings in the short term.
In recent pre-market trading, Broadcom's shares were at $30.60, versus Thursday's close of $30.65. Qualcomm was at $43.30, versus Thursday's close of $43.56.
-By Mike Barris, Dow Jones Newswires; 201-938-5658; mike.barris@dowjones.com
(Tom Rojas contributed to this article.)
(END) Dow Jones Newswires"
Posted to the site on 22nd June 2007