Federal Court Recognizes Value of Qualcomm’s Intellectual Property and Issues Injunction against Misappropriation of Qualcomm’s Trade Secrets by Maxim Integrated Products
Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, reported that the United States District Court in San Diego has issued a preliminary injunction prohibiting Maxim Integrated Products, Inc. from any “current and future acts misappropriating trade secrets of Qualcomm.” The court found that Qualcomm “has shown a course of past conduct by Maxim that is predatory, wrongful and in violation of the laws of the State of California.” Under California law, misappropriation consists of the acquisition, disclosure or use of the trade secrets of another, including the development or sale of products that contain or benefit from any misappropriated trade secrets. Although the Court denied Qualcomm’s additional request for a further injunction barring Maxim’s sale of two specific chip lines for a year, Maxim’s sale of integrated circuits or any other products found to contain or benefit from any of the Qualcomm trade secrets misappropriated by Maxim would violate the injunction.
The January 13, 2005 order is also binding upon anyone in active concert or participation with Maxim who receives actual notice of the order. The court ordered Maxim to deliver a copy of the injunction order to the chief executive officer and relevant division managers of each of Maxim’s CDMA radio frequency component customers. A copy of the injunction may be viewed at www.qualcomm.com.
“The extraordinary relief granted by the court recognizes the value of Qualcomm’s intellectual property and the importance of protecting Qualcomm’s trade secrets from unlawful use by competitors,” said Louis Lupin, senior vice president and general counsel of Qualcomm. “We appreciate the court’s swift action to prevent further injury to Qualcomm and to limit Maxim’s competitive use of Qualcomm’s confidential information that Maxim has obtained by its unfair practices.”
The litigation began in December 2002 when Qualcomm sued Maxim for infringement of four patents relating to RF chips for wireless products. During the course of discovery, Qualcomm obtained evidence that Maxim had obtained and utilized Qualcomm’s trade secrets. On November 29, 2004 the court granted Qualcomm’s request to file an amended complaint adding claims for trade secret misappropriation and unfair competition. Qualcomm promptly moved for a preliminary injunction which resulted in the court’s January 13, 2005 order. The trial of Qualcomm’s patent infringement claims is currently scheduled for late June of this year.
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. Headquartered in San Diego, Calif., Qualcomm is included in the S&P 500 Index and is a 2004 FORTUNE 500® company traded on The Nasdaq Stock Market® under the ticker symbol QCOM.
