Press Release

Qualcomm Responds to Motorola's Duplicative Lawsuit

Jun 5, 1997SAN DIEGO

Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.

Responding to a largely duplicative patent infringement action, Qualcomm Incorporated (NASDAQ: QCOM) today denied that any of its Code Division Multiple Access (CDMA) products infringe Motorola's patents. Motorola's latest complaint repeats some previous claims and cites three patents already at issue in the earlier lawsuit spending between the parties in federal court in San Diego. The complaint adds one additional patent that pertains to amplifier gain control. The cited patents are not specific to CDMA. For example, one is titled 'Power Control Circuitry for a TDMA Radio Frequency Transmitter' and another 'Dialing Prefix Method and Apparatus'.

"Motorola's filings appear to be an attempt to bully Qualcomm into renegotiating a long-standing contract and royalty arrangement despite the high value Motorola receives from our CDMA patents," said Steve Altman, senior vice president and general counsel for Qualcomm. "Despite Motorola's frequent disparagement of Qualcomm's conduct, Qualcomm and its employees have always acted ethically and responsibly towards Motorola."

"Now that CDMA has achieved widespread acceptance and Motorola is apparently closer to entering the market with a CDMA phone, Motorola no longer appears content with the deal it struck to gain access to Qualcomm's technology," Altman said.

Motorola's new complaint contends that Qualcomm's wireless phone products infringe four patents of Motorola—three of which are the same patents that were the subject of Qualcomm's original complaint against Motorola filed in San Diego in early March. In that first-filed case, Qualcomm sought a judicial declaration that all of Qualcomm's wireless phone products did not infringe these three patents, and that Qualcomm's new "Q" phone does not infringe a fourth design patent or Motorola's trade dress.

On April 24, 1997, Motorola's request for a preliminary injunction barring Qualcomm from selling the "Q" Phone was denied by the federal court. In its opinion, the court found that Motorola had no likelihood of success on the merits of its claims of design patent and trade dress infringement.

While Qualcomm Personal Electronics has become the world's leading manufacturer of CDMA phones, the commercial introduction of Motorola's CDMA phone products has been repeatedly delayed. Indeed, Motorola has purchased thousands of CDMA phones from Qualcomm over the last two years and is quite familiar with Qualcomm's products.

"We find it telling that Motorola only now claims that Qualcomm's CDMA phones infringe Motorola's patents. Qualcomm has alleged in the earlier cases that Motorola is attempting to prevent Qualcomm from expanding its share of the wireless phone market at a time when Motorola has no CDMA product offering with which to compete," Altman said.

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 equipment on 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 29, 1996 and most recent Form 10-Qs.

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