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Court Enjoins Broadcom from Use or Misappropriation of Qualcomm Trade Secrets

– October 30, 2006 – Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, reported today that the Federal Court in San Diego has enjoined Broadcom from any further solicitation, use or dissemination of Qualcomm's confidential WCDMA trade secrets, including source code. Broadcom's agreement to the injunction and its imposition by the Court demonstrate that an earlier Broadcom press release, reporting that Qualcomm's request for such an injunction had been denied, was erroneous. The preliminary injunction will remain in effect at least through completion of the trial in this case, presently set to start on October 10, 2007.

“Qualcomm is pleased with the injunction against Broadcom prohibiting any use of our confidential information, as well as the prohibition against future attempts to obtain such information,” said William Sailer, senior vice president and legal counsel for Qualcomm. “While we welcome fair competition in the marketplace, we will defend our business against those who attempt to misappropriate the benefits of our extensive and continuous investment in research and innovation. This preliminary injunction is an important first step toward protecting Qualcomm from Broadcom's misappropriation and misuse of Qualcomm's intellectual property.”

As explained in Qualcomm's motion seeking the injunction, Qualcomm recently discovered that Broadcom, during the period leading up to its introduction of WCDMA baseband products, had engaged in a successful multi-year effort to improperly acquire thousands of pages of Qualcomm confidential business and technical information, including valuable source code, relating to Qualcomm's WCDMA product development. The preliminary injunction bars any use of the confidential technical and business information in the misappropriated Qualcomm documents, including by the exploitation of such information in the marketing, sales or development of Broadcom's current or future products. It is a court order, the violation of which could result in a finding of contempt.

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 2006 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Stipulated Order for Preliminary Injunction (PDF Format)

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Topics: Corporate
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