Qualcomm and Broadcom Wave a Paper and Declare Peace For Our Time

Published on: 27th April 2009

The acrimonious patent battle between Qualcomm and Broadcom is finally over. The two firms have entered into a settlement and multi-year patent agreement, which will result in the dismissal with prejudice of all litigation between the companies, including all patent infringement claims in the International Trade Commission and U.S. District Court in Santa Ana, as well as the withdrawal by Broadcom of its complaints to the European Commission and the Korea Fair Trade Commission.

Under the agreement, the companies have granted certain rights to each other under their respective patent portfolios. Qualcomm will pay Broadcom US$891 million over a four-year period. The terms of this agreement will not result in any change to Qualcomm's 3G (e.g., CDMA2000®, WCDMA and TD-SCDMA) and 4G (e.g., LTE and WiMAX) licensing revenue model.

Broadcom and Qualcomm have also agreed not to assert patents against each other for their respective integrated circuit products and certain other products and services, while Broadcom agrees not to assert its patents against Qualcomm's customers for Qualcomm's integrated circuit products incorporated into cellular products.

Qualcomm's customers will not be receiving the rights to any of Broadcom's patents with respect to Qualcomm integrated circuit products incorporated into non-cellular products and equipment, while Qualcomm agrees not to assert its patents against Broadcom's customers for Broadcom's integrated circuit products incorporated in non-cellular products.

Additionally, Broadcom customers do not receive rights to any of Qualcomm's patents with respect to Broadcom integrated circuit products incorporated into cellular products and equipment.

Other terms of the agreement are confidential.

Qualcomm's CEO, Dr. Jacobs commented "I am pleased that we have achieved this important settlement. At a time when the wireless industry should be focused on moving forward, the agreement removes uncertainty for Qualcomm and its customers."

"Today's settlement allows both companies to move on with their business and compete in the semiconductor sector as two of its innovation leaders," Scott A. McGregor, president and CEO of Broadcom said. "We have set aside our differences while addressing the needs of our customers, our shareholders and the industry. In addition, the companies have worked together to achieve their mutual goals of improving the competitive dynamics of the industry."

 

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