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Delaware Court Rules That Texas Instruments Breached Patent Portfolio Agreement with Qualcomm

– July 01, 2004 – Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced the outcome of the parties' summary judgment motions in the litigation between Qualcomm and Texas Instruments in the Delaware Court of Chancery. On June 30, 2004 the court ruled that TI was in breach of the companies' Patent Portfolio Agreement and that the case will proceed to trial in order to determine the extent of TI's liability to Qualcomm for damages incurred as a result of TI's breach. The court further ruled that, although TI may be found liable for damages incurred by Qualcomm as a result of TI's breach, Qualcomm will not be entitled to terminate the agreement. The court also granted Qualcomm's motion for summary judgment on TI's claims, concluding that Qualcomm has not breached the agreement as alleged by TI. In addition, the court denied TI's motions for summary judgment that TI's breach was excused and that TI's breach had not caused any damages to Qualcomm.

"We are gratified that at this stage of the proceedings the court has determined that TI breached the agreement and Qualcomm did not," said Steve Altman, executive vice president, Qualcomm. "We expect our licensees to comply with the terms of our agreements and are prepared to enforce our agreements whenever necessary to ensure their compliance. The court's ruling that TI's disclosure was a breach of our agreement is consistent with Qualcomm's view of the importance of abiding by contractual obligations. Although the court ruled that we cannot terminate TI's license, we are pleased with all other aspects of the Chancellor's decision, including his finding that it was TI and not Qualcomm that breached the agreement and that Qualcomm's case against TI may proceed to trial."

Qualcomm originally filed its complaint against Texas Instruments for breach of the companies' Patent Portfolio Agreement in the Delaware Superior Court in July 2003. When TI responded by filing a complaint against Qualcomm for alleged breach of the same agreement in the Delaware Chancery Court, Qualcomm voluntarily dismissed its Superior Court case and re-filed its complaint in the Chancery Court so that a single court could hear all the claims. The Chancery Court's ruling fully disposes of TI's complaint while keeping intact Qualcomm's damages claims for trial, presently set for August 16, 2004.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2003 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

Topics: Corporate
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