SAN DIEGO -- February 19, 2002 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, today announced that it has won summary judgment in its patent infringement litigation with GTE Wireless, Inc. In an order dated February 14, 2002, the United States District Court for the Southern District Court of California, Judge Rudi M. Brewster, granted Qualcomm's motion for a judgment that Qualcomm's products do not infringe any of the claims at issue of United States Patent No. 4,916,728. The Court ruled that Qualcomm's products do not infringe the patent as a matter of law. GTE asserted that the '728 patent covers the way in which cellular telephones determine which cellular system to use for a particular call when multiple systems are detectable by the phone. The Court held that the way in which the Qualcomm products perform this function was substantially different from the way claimed in the patent as a matter of law. The Court simultaneously denied GTE's motion for summary judgment of infringement.
"Qualcomm is gratified that its strongly held position has been vindicated," stated Lou Lupin, general counsel and senior vice president of Qualcomm. "Because proprietary technology is the lifeblood of our company, we have a profound respect for intellectual property rights. That respect compels us not only to honor meritorious claims but to vigorously contest meritless claims."
GTE originally filed this case in Virginia in June 1999 but Qualcomm's motion to transfer the case to the federal court in San Diego was granted in September 1999. The Court's grant of summary judgment in Qualcomm's favor comes one week after hearing oral argument on the parties' motions.
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. The Company's business areas include CDMA chipsets and system software; technology licensing; the Binary Runtime Environment for Wireless™ (BREW™) applications platform; QChat™ push-to-talk technology; Eudora® e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar™ system and wireless fleet management systems, OmniTRACS® and OmniExpress®. Qualcomm owns patents that are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 100 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 2001 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including the Company's ability to successfully design and have manufactured significant quantities of CDMA components on a timely and profitable basis, the extent and speed to which CDMA is deployed, 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 30, 2001, and most recent Form 10-Q.