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Qualcomm Sues Ericsson for Unfair Competition; Moves to Intervene in Litigation Brought by OKI America, Inc. Versus Ericsson

– December 10, 1996 – Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has filed suit in the United States District Court for the Southern District of California against Ericsson, Inc. and Telefonaktiebolaget LM Ericsson ("Ericsson"), Civil Action No. 962064K (CGA).

The complaint alleges unfair competition by Ericsson based on a pattern of conduct intended to impede the acceptance and commercial deployment of Qualcomm's Code Division Multiple Access (CDMA) technology and products by the telecommunications industry. The pattern of conduct, as alleged in the complaint, includes publication by Ericsson of false and disparaging statements about Qualcomm's CDMA technology and the assertion by Ericsson of baseless claims of patent infringement against Qualcomm's CDMA products. Qualcomm's complaint also charges that Ericsson's patent infringement claims violate a 1989 nondisclosure agreement between the two companies in which Ericsson expressly acknowledged that key elements of Qualcomm's CDMA technology, such as soft handoff, power control, and multiple receivers to mitigate multipath interference, were proprietary to Qualcomm. In addition, Qualcomm's lawsuit seeks a judicial declaration that certain of Ericsson's patents are not infringed by Qualcomm and are invalid.

Qualcomm also today announced that it had filed a motion to intervene in a lawsuit filed by OKI America, Inc. ("OKI") against Ericsson in the United States District Court for the Northern District of California, Civil Action No. C-96 20747. The OKI lawsuit, filed on September 10, 1996, alleges that nine Ericsson patents are invalid and not infringed by CDMA products made and sold by OKI.

In Qualcomm's motion to intervene, the Company states that OKI's CDMA products were made under license from Qualcomm, that Qualcomm has supplied OKI with CDMA ASICs (application specific integrated circuits) which OKI has used in those products, and thus that Qualcomm has a strong interest in joining with OKI to establish that Ericsson's patents are invalid and not infringed by the licensed CDMA technology.

Headquartered in San Diego, Qualcomm develops, manufactures, markets, licenses and operates advanced communications systems and products based on its proprietary digital wireless technologies. The Company's primary product areas are the OmniTRACS® system (a geostationary satellite-based, mobile communications system providing two-way data and position reporting services), CDMA wireless communications systems and products and, in conjunction with others, the development of the Globalstar™ low-earth-orbit(LEO) satellite communications system. Other Company products include the Eudora Pro™ electronic mail software, ASIC products, and communications equipment and systems for government and commercial customers worldwide. For more information on Qualcomm products and technologies, please visit the Company's web site at http://www.qualcomm.com.

Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development and commercial implementation of the Company's CDMA technology, continued growth in the CDMA subscriber population and the scale up and operations of CDMA systems, timing and receipt of license fees and royalties, the Company's ability to successfully manufacture significant quantities of CDMA or other equipmenton a timely and profitable basis and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 28, 1996 and most recent Form 10-Qs.

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Topics: Corporate
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