Qualcomm Inc (QCOM)

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Qualcomm, rival continue battling over patents

http://www.signonsandiego.com/news/business/20051019-9999-1b19qcom.html


Broadcom sued again over alleged violations
By Kathryn Balint
UNION-TRIBUNE STAFF WRITER
October 19, 2005

In the latest salvo of an ongoing dispute, Qualcomm, the San Diego wireless technology giant and maker of cell phone chips, has filed its second lawsuit against microchip manufacturer Broadcom alleging patent infringement.

The suit, filed Friday in U.S. District Court in San Diego, accuses Irvine-based Broadcom of using two of Qualcomm's patented technologies for processing digital video without authorization.

Qualcomm spokeswoman Bertha Agia declined to comment on the suit.

Broadcom spokesman Bill Blanning said the company is not deterred by this suit or Qualcomm's previous one.

Qualcomm licenses wireless technology and makes chips for cell phones. Broadcom is developing a cell phone chip that would compete against Qualcomm's.

In May, Broadcom filed two lawsuits and a complaint with the U.S. International Trade Commission accusing Qualcomm of infringing on 10 of Broadcom's patents. The commission has begun investigating.

Then in July, Broadcom filed an antitrust lawsuit that said Qualcomm had created a virtual monopoly and was stifling competition in the cell phone chip industry. The suit said Qualcomm has demanded licensing terms for its patents that "are aimed to cripple Broadcom as a competitor."

Qualcomm has said all the lawsuits are without merit. It has defended its licensing practices as "lawful, fair, reasonable and pro-competitive."

Qualcomm, in turn, filed its first suit against Broadcom in July. Qualcomm, which has 3,000 patents and pending patent applications in the United States, accused Broadcom of infringing on seven patents.

Yesterday, Blanning, of Broadcom, said it is common for defendants in patent cases to respond with countersuits.

"We remain convinced that our patent claims are very strong, and we are confident of prevailing," Blanning said.

Shares of Qualcomm closed yesterday at $42.45, up 26 cents. Shares of Broadcom closed at $43.61, down 31 cents.



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Kathryn Balint: [phone]; [e-mail]