NEW YORK -(Dow Jones)- A judge ruled that Qualcomm was illegally supporting phones using technology owned by Broadcom.
U.S. District Judge James Selna ruled that Qualcomm was violating an existing ban against the use and servicing of patents covering third-generation, or 3G, wireless technology. He also ruled Qualcomm wasn't paying royalties for one patent covering a walkie-talkie feature Qualcomm calls QChat.
"Qualcomm's conduct demonstrates a startling lack of respect for its competitors' intellectual property, industry standards-setting processes, and the courts," said David Rosmann, vice president of Broadcom's intellectual property litigation.
Qualcomm, however, said it had the "utmost respect for the order today," said Alex Rogers, legal counsel for the company. He said the judge's intepretation of the injunction was different than the company's opinion, but that the company would comply immediately.
It's the latest aftermath of the legal defeat handed to Qualcomm by Broadcom, which was able to successfully argue that Qualcomm was illegally using its technology last year.
The ruling pertains to products sold between the ruling in May and the start of the injunction. Qualcomm felt that since it had paid royalties to Broadcom, it could continue to service those products. The judge disagreed.
"The judge said our reading was incorrect," Rogers said. "We are very disappointed with the ruling."
Selna, who sits on the U.S. District Court in Santa Ana, Calif., said Qualcomm violated three of four patents that Broadcom had previously defended with success. He ordered Qualcomm to stop using the technology, and to pay Broadcom the gross profits on the infringing QChat products.
Rogers said he didn't know how much the actual amount of the damages would be.
Qualcomm plans to file an appeal. The company has since developed technology that gets around the disputed patents, so newer products - including QChat phones - aren't affected.
The ruling is another chapter in the dramatic feud between the two. In addition to the legal sparring, the two have argued over licensing practices. At one point, Qualcomm was rebuked for failing to turn over e-mail evidence.
Broadcom, Irvine, Calif., is a relative newcomer in the cellphone chipset market, but has been aggressive in defending a series of patents it had previously acquired. It accused Qualcomm of illegally using its technology in 2005.
San Diego-based Qualcomm, meanwhile, has a long legacy of pioneering wireless technology, but has more recently gotten into hot water with other players in the industry over how it licenses is technology. In July, it settled its litigation with Nokia
Because of the size of Broadcom, few Wall Street analysts expressed concern over the effect of the related litigation, giving more focus to the resolution of the Nokia dispute.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020; roger.cheng@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 29th August 2008
Posted to: www.cellular-news.com/story/33327.php