Court Overturns Ban on Qualcomm Cellphone Imports

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WASHINGTON (AP) A federal judge Wednesday halted an import ban on mobile phones by Qualcomm a rare legal victory in a long standing patent dispute with rival Broadcom.

Judge Haldane Mayer on the U.S. Court of Appeals for the Federal Circuit granted a request by several mobile phone manufacturers and AT&T's wireless division to stay the ban the federal government ordered in June.

The U.S. International Trade Commission barred imports of new mobile phone models with Qualcomm chips after determining that the company had violated a patent held by chip maker Broadcom on battery power-saving technology. The White House refused to overturn the ban in August.

Numerous companies that use Qualcomm chips in the cellphones they manufacture, including Motorola, Samsung Electronics and T-Mobile USA, appealed the ITC ruling. They argued that since Broadcom only filed its complaint against Qualcomm, the ITC did not have the authority to block imports by companies other than Qualcomm.

The judge agreed with the appealing companies and stayed the ITC's order pending their appeal. The stay applies only to the companies that filed the appeal.

"We are pleased that the Court of Appeals recognized the undeserved harm to parties who were not named in the lawsuit, and that our customers will continue to be able to introduce new products into the U.S. marketplace during the appeals process," said Alex H. Rogers, Qualcomm's senior vice president and legal counsel.

A comment from Broadcom was not immediately available.

Qualcomm shares rose 33 cents to $38.20 in after-hours trading and ended the regular trading session down 14 cents to close at $37.87. Broadcom shares rose 3 cents to $35.40 in after-hours trading and ended the regular session down 9 cents to $35.37.

(END) Dow Jones Newswires

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Tags: broadcom  t-mobile usa  qualcomm  international trade commission  samsung electronics  itc  motorola,  patent 

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