Qualcomm Inc (QCOM)

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Reuters:Qualcomm rejects Broadcom claims
Wednesday July 6, 8:24 am ET

http://biz.yahoo.com/rb/050706/telecoms_qualcomm_broadcom.html?.v=3

NEW YORK (Reuters) - Qualcomm Inc. (NasdaqNM:QCOM - News) said on Wednesday that its practices for selling technology licenses are lawful and favor competition following an antitrust lawsuit brought against it from rival Broadcom Corp. (NasdaqNM:BRCM - News).

Wireless technology company Qualcomm said that communications chip maker Broadcom's decision to take legal actions rather than negotiating with Qualcomm means that Qualcomm will have to "proceed with litigation of its own."

Broadcom said on Tuesday that it was filing an antitrust suit against Qualcomm, arguing that it was unfairly using its technology licensing business to help sell its chips for high-speed wireless phones.

Qualcomm rejected the charges in a statement on Wednesday, saying its "licensing practices are lawful, fair, reasonable and pro-competitive."

The antitrust lawsuit, which was filed in the U.S. District Court for the District of New Jersey, follows patent infringement and fair trade complaints made by Broadcom against Qualcomm that were disclosed in May.

"This case, like the earlier patent cases filed by Broadcom against Qualcomm, appears to be a desperate attempt by Broadcom to gain bargaining leverage through meritless litigation," said Qualcomm senior vice president and general counsel Louis Lupin.

"Broadcom's unfortunate preference for the litigation forum rather than the negotiating table will require Qualcomm to proceed with litigation of its own."

Qualcomm recently resolved legal battles with technology license customers Texas Instruments Inc. (NYSE:TXN - News) and Skyworks Solutions (NasdaqNM:SWKS - News).