In a decision handed down on April 4, 1997, the U.S. District Court, Southern District of California, granted Qualcomm Incorporated's (NASDAQ: QCOM) request for a temporary restraining order against Motorola. This order prohibits Motorola from stating, suggesting, inferring or otherwise communicating directly or indirectly to Qualcomm's customers, suppliers or prospective suppliers or to others proposing to do business with Qualcomm that the company in any way unlawfully relied on Motorola's intellectual property in designing and producing the "Q" phone.
"This decision emphasizes that this case will be tried, not via rumor and innuendo, but in a court of law with facts and truth. Our engineers expended a great deal of effort to be the first to provide the benefits of Qualcomm's CDMA technology in a palm-sized phone. We are eager to move ahead with this case and believe that Qualcomm will be vindicated. We are currently ramping production of the 'Q' phone at our San Diego factory to satisfy the demand of PCS carriers and their customers," said Dr. Paul E. Jacobs, president of Qualcomm's Subscriber Products Division.
In handing down this decision, the U.S. District Court found that Qualcomm had demonstrated a sufficient likelihood of success on its claims for false advertising and unfair competition to warrant issuance of the temporary restraining order. The court further indicated that Motorola had made atleast one false statement in its representations of Qualcomm's alleged utility patent infringement.
The court's written order stated that "on the basis of the evidence presented, Plaintiff (Qualcomm) has established that Defendant (Motorola) informed Plaintiff's customers that Plaintiff's 'Q' phone infringed upon Defendant's utility patents even though Defendant had no basis for making such a claim since it had no knowledge of the relevant features of the 'Q' phone."
The order is in effect until April 17, 1997. A preliminary injunction hearing will be held on April 16, 1997 at 10:30 a.m. in U.S. District Court.
Qualcomm's Personal Communications Services (PCS) 1900 MHz "Q" phone is the smallest and lightest CDMA phone now operating, weighing in at approximately 5 ounces. Designed with frequent wireless users in mind, the "Q" phone offers the convenience of a small phone while delivering the advanced performance of a complete wireless information appliance. The new "Q" phone supports instant wireless access to information previously available only from computing devices, including meeting schedules, airline reservations, stock quotes, weather reports, movie listings and sports scores. The "Q" phone is expected to become commercially available during summer of 1997. The hallmarks of every Qualcomm CDMA digital phone include crystal clear voice quality, enhanced privacy, fewer dropped calls, and longer talk and stand-by times.
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.
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