Qualcomm Faces $1 Billion Patent Lawsuit

Gabriel Technologies has filed a lawsuit against Qualcomm claiming that its subsidiary, SnapTrack wrongly appropriated valuable intellectual property that was developed as part of a joint development agreement with Locate Networks. Rights under the joint development agreement were acquired by Trace Technologies - which is a subsidiary of Gabriel Technologies.

The complaint, which seeks over US$1 billion in damages, accuses Qualcomm of procuring more than 90 separate patents by claiming ownership and failing to notify Gabriel Technologies about its activities. Norman Krasner, SnapTrackÃ's then vice-president of technology, also is named as a defendant.

"We look forward to providing the court with evidence of QualcommÃ's wrongdoing in this case," said Ronald E. Gillum, Jr., President of Gabriel Technologies. "We intend to vigorously prosecute this misappropriation of our valuable intellectual property."

The disputed technology involves significant refinements and enhancements to what is commonly known as "assisted GPS." Assisted GPS allows global positioning technology to be integrated into mobile devices, enabling a wide-variety of wireless services such as driving directions, identifying closest restaurants or banks, and tracking of assets or individuals for safety or in emergency situations.

According to the complaint, Krasner and SnapTrack began taking and unlawfully patenting LocateÃ's technology, motivated by a desire to add to SnapTrackÃ's patent portfolio in hopes of enticing an acquisition by a larger company such as Qualcomm. In 2000, Qualcomm purchased SnapTrack for $1 billion in stock. The lawsuit states that Krasner and his wife received 300,000 shares of Qualcomm stock.

Gabriel Technologies is asking the court to declare that the company owns the contested technology and related patents and other intellectual property. The lawsuit includes claims against SnapTrack for breach of the joint development agreement. Also, defendants are accused of fraud, misappropriation, unfair competition and patent infringement.

Posted to the site on 27th October 2008