Published: November 18, 2008
Qualcomm Again Held in Contempt of Injunction on 3G Cellular Products Previously Found to Infringe Broadcom Patent
IRVINE, Calif., Nov. 18 /PRNewswire-FirstCall/ -- Broadcom Corporation
(Nasdaq: BRCM), a global leader in semiconductors for wired and wireless
communications, announced that a federal judge yesterday found Qualcomm
Incorporated (Nasdaq: QCOM) in contempt of an injunction entered last December
that was designed to prevent Qualcomm from continued infringement of two
Broadcom patents.
As to Broadcom's U.S. Patent No. 5,657,317, the injunction prohibits
Qualcomm from making, using, selling, offering for sale, importing, and
developing certain EV-DO chips. The injunction also provides a sunset period
during which Qualcomm can continue to sell legacy EV-DO chips to legacy
customers until January 31, 2009, provided that it pays a royalty to Broadcom.
U.S. District Court Judge James V. Selna found that Qualcomm violated both
provisions of the injunction by selling and offering to sell enjoined EV-DO
chips and by failing to pay royalties on legacy EV-DO chips.
With regard to the sales of enjoined EV-DO chips, and citing the
"egregiousness" of Qualcomm's conduct, the court ordered Qualcomm to retrieve
the chips and destroy them or, if it is unable to do so, to pay Broadcom
Qualcomm's gross profits on the sales. With regard to the sales of legacy
chips to legacy customers, the court ordered Qualcomm to pay past royalties,
plus a penalty. The court further ordered Qualcomm to take remedial steps to
prevent further violations of the injunction, and awarded Broadcom its
attorney fees.
"This is the second time that Qualcomm has been found in contempt of the
same federal court injunction," said David Rosmann, Broadcom's Vice President,
Intellectual Property Litigation. "Qualcomm's ongoing contempt reflects a
remarkable disregard for a system meant to protect intellectual property
rights."
In August, Judge Selna found that Qualcomm violated the injunction by
failing to pay royalties under Broadcom's U.S. Patent No. 6,389,010 on
infringing QChat(R) products. Citing the "egregiousness" of Qualcomm's
conduct there, the court ordered Qualcomm to pay Broadcom the gross profits
Qualcomm had earned on its infringing QChat(R) products.
Broadcom filed its infringement case against Qualcomm in the U.S. District
Court inSanta Ana, Calif., in May 2005. On May 29, 2007, a unanimous jury
returned a verdict finding that Qualcomm infringed three Broadcom patents and
awarded $19.64 million in damages for past infringement. A federal appeals
court recently upheld the infringement findings on the '010 and '317 patents,
which relate to network selection and simultaneous network access
technologies.
About Broadcom
Broadcom Corporation is a major technology innovator and global leader in
semiconductors for wired and wireless communications. Broadcom products
enable the delivery of voice, video, data and multimedia to and throughout the
home, the office and the mobile environment. We provide the industry's
broadest portfolio of state-of-the-art, system-on-a-chip and software
solutions to manufacturers of computing and networking equipment, digital
entertainment and broadband access products, and mobile devices. These
solutions support our core mission: Connecting everything(R).
Broadcom is one of the world's largest fabless semiconductor companies,
with 2007 revenue of $3.78 billion, and holds over 3,000 U.S. and 1,200
foreign patents, more than 7,600 additional pending patent applications, and
one of the broadest intellectual property portfolios addressing both wired and
wireless transmission of voice, video, data and multimedia.
Broadcom is headquartered inIrvine, Calif., and has offices and research
facilities inNorth America,Asia andEurope. Broadcom may be contacted at
+1.949.926.5000 or at www.broadcom.com.
Cautions regarding Forward Looking Statements:
All statements included or incorporated by reference in this release,
other than statements or characterizations of historical fact, are forward-
looking statements. These forward-looking statements are based on our current
expectations, estimates and projections about our industry and business,
management's beliefs, and certain assumptions made by us, all of which are
subject to change. Forward-looking statements can often be identified by words
such as "anticipates," "expects," "intends," "plans," "predicts," "believes,"
"seeks," "estimates," "may," "will," "should," "would," "could," "potential,"
"continue," "ongoing," similar expressions, and variations or negatives of
these words. These forward-looking statements are not guarantees of future
results and are subject to risks, uncertainties and assumptions that could
cause our actual results to differ materially and adversely from those
expressed in any forward-looking statement.
Important factors that may cause such a difference for Broadcom in
connection with our litigation with Qualcomm include, but are not limited to:
-- our ability to prevail in the various federal and state lawsuits and
other proceedings against Qualcomm, including any appeals;
-- the ability of our patents to protect our intellectual property and
products;
-- our ability to enforce our intellectual property rights; and
-- the risks associated with litigation in general, including the costs
and time that must be devoted to litigation, the potential diversion of
attention of management and key employees that may result from being engaged
in litigation, and the possibility of adverse results.
Additional factors that may cause Broadcom's actual results to differ
materially from those expressed in forward-looking statements include, but are
not limited to the list that can be found at
http://www.broadcom.com/press/additional risk factors/Q42008.php.
Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K, and other Securities and Exchange
Commission filings discuss the foregoing risks as well as other important risk
factors that could contribute to such differences or otherwise affect our
business, results of operations and financial condition. The forward-looking
statements in this release speak only as of this date. We undertake no
obligation to revise or update publicly any forward-looking statement, except
as required by law.
Broadcom(R), the pulse logo, Connecting everything(R) and the Connecting
everything logo are among the trademarks of Broadcom Corporation and/or its
affiliates inthe United States, certain other countries and/or the EU.
Qualcomm and QChat(R) are trademarks of Qualcomm Incorporated. Any other
trademarks or trade names mentioned are the property of their respective
owners.
Broadcom Business Press Contact
Bill Blanning
Vice President, Global Media Relations
949-926-5555
blanning@broadcom.com
Broadcom Financial Analyst Contact
T. Peter Andrew
Vice President, Corporate Communications
949-926-5663
andrewtp@broadcom.com
SOURCE Broadcom Corporation; BRCM Corporate
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