Broadcom renews patent battle with Qualcomm

Mon. October 13, 2008; Posted: 05:06 AM

Oct 13, 2008 (Datamonitor via COMTEX) -- QCOM | Quote | Chart | News | PowerRating -- Communications chip maker Broadcom has renewed its patent battle with wireless telecommunications products and services company Qualcomm with a new lawsuit accusing Qualcomm of patent misuse.

In the suit filed with the US District Court for the Southern District of California in San Diego, Broadcom is seeking to stop Qualcomm from charging patent royalties for chips in handsets and the handsets themselves. According to Broadcom this amounts to double-charging for patents and falls under the legal concept of "patent exhaustion".

Broadcom cited a recent case between Quanta Computer and LG Electronics as a precedent for the litigation. In the Quanta case, LG licensed its technology to Intel with the condition that any companies buying Intel's chips must purchase their own license from LG. Computer maker Quanta refused to buy a license, claiming LG's patents were exhausted when Intel sold it the chips.

Broadcom said: "Qualcomm's use of 'exhausted' patents to control post-sale use of products in the wireless communications industry results in a double recovery of royalties to Qualcomm for the use of its patents. It further asserts that these practices constitute patent misuse that has brought Qualcomm a financial windfall and brought harm to the industry and consumers."

Qualcomm and Broadcom are also in talks to settle other patent battles pending in California, the International Trade Commission, and the Federal Appeals court, and are expected to eventually reach a licensing agreement.

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For full details on Qualcomm Inc (QCOM) click here. Qualcomm Inc (QCOM) has Short Term PowerRatings of 6. Details on Qualcomm Inc (QCOM) Short Term PowerRatings is available at This Link.

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