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Qualcomm Sues Broadcom for Patent Infringement

Complaint Identifies GSM/GPRS Chips and Wi-Fi Semiconductors as Infringing Products

– July 11, 2005 – Qualcomm Incorporated (Nasdaq: QCOM), pioneer and innovator of Code Division Multiple Access (CDMA) and other cutting-edge wireless technologies, today filed suit against Broadcom Corporation in federal court in San Diego for infringement of seven Qualcomm patents. Qualcomm's lawsuit asserts infringement of patents that are “essential” to the manufacture or use of equipment that complies with the GSM, GPRS and EDGE cellular standards (the “GSM Standards”) and to certain interoperability standards for wireless local area networks popularly known as Wi-Fi. Patents that are “essential” to a standard are those that must necessarily be infringed to comply with the requirements of the standard. Qualcomm's complaint states that Broadcom is infringing six of the patents by the manufacture and sale of integrated circuits for use in GSM Standards handsets and is infringing the remaining patent by the manufacture and sale of semiconductors for Wi-Fi devices. Qualcomm seeks an injunction against Broadcom's continued manufacture and sale of these products as well as monetary damages.

Second-generation GSM systems rely on a form of technology known as time division multiple access (TDMA). For third-generation (3G) services, many GSM wireless carriers have chosen to deploy a form of CDMA, called WCDMA. However, even before the 3G transition, GSM systems have been adding data and other capabilities, via GPRS and EDGE technologies, with advancements such as higher data transmission rates, increased spectral efficiency/greater capacity, resistance to interference, access to packet switched networks and multimedia distribution. As a result, these evolving GSM Standards now incorporate a number of Qualcomm's patented inventions, originally developed to enable such capabilities in CDMA networks. The patents in this suit cover some of Qualcomm's innovations that have now been incorporated into the GSM Standards through GPRS and EDGE. As explained in Qualcomm's complaint, Broadcom's integrated circuits for GSM Standards-compliant devices unavoidably infringe Qualcomm's patents essential to the GSM Standards.

Qualcomm's extensive investments in research and development have yielded valuable innovations in virtually all aspects of wireless technology, greatly aiding the ability of the Company's licensees to offer advanced services. These innovations are applicable to high data rate wireless networks of many kinds, including popular wireless local area networks. The Broadcom Wi-Fi chips cited in the complaint utilize certain of these patented innovations.

“Our complaint, based upon our initial review of Broadcom's business, discloses that a number of Broadcom's major product lines infringe Qualcomm's patents. We are continuing to examine Broadcom's other businesses,” said Louis M. Lupin, senior vice president and general counsel for Qualcomm. “Those who believe that Qualcomm's intellectual property portfolio is limited to CDMA have overlooked the breadth of our business activity and the extent of our research and development from which our intellectual property is generated. Our intellectual property rights are broad, and we will not hesitate to assert their full breadth when appropriate.”

Qualcomm's extensive patent portfolio includes more than 3,000 United States patents and patent applications for CDMA and other technologies augmented by corresponding patents and applications around the globe. Qualcomm has entered into more than 130 royalty-bearing license agreements with the world's leading telecommunications equipment makers and consumer electronics manufacturers.

Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on CDMA and other advanced technologies. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2005 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.

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Topics: Corporate
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