Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that on February 6, 2006 the Federal District Court in San Diego permanently enjoined Broadcom from prosecuting infringement claims against Qualcomm under two of its patents in International Trade Commission (ITC) proceedings initiated last year by Broadcom. The court ruled that a long-standing agreement between Qualcomm and Broadcom requires that the dispute as to the two patents must be litigated in San Diego.
Broadcom claims that the two patents relate to Bluetooth technology implemented in cell phones and cellular systems. In 2001, Broadcom and Qualcomm entered into an agreement concerning Bluetooth technology which provided that any disputes relating to the agreement must be litigated in a San Diego court. In May 2005, Broadcom initiated patent infringement claims against Qualcomm in both the ITC in Washington, D.C. and in federal court in Santa Ana, California, alleging that activities undertaken by Qualcomm in connection with the agreement amounted to infringement of the two patents. Qualcomm's reply denied infringement and pointed out that the accused activities were permitted under the companies' agreement in any event. When Qualcomm attempted to move the disputes to San Diego as the agreement required, Broadcom sought an order from the Santa Ana court prohibiting Qualcomm from proceeding in San Diego. The Santa Ana court eventually transferred its case to San Diego.
"Broadcom has long resisted bringing this dispute to the agreed-upon forum, San Diego," said Alex Rogers, vice president and legal counsel, Qualcomm. "We are gratified by the courts' enforcement of the provisions of the agreement."
Broadcom has indicated its intention to appeal the injunction. Trial in the ITC action is set to begin next week. Three other Broadcom patents at issue in the ITC proceedings are not impacted by the injunction. Two patent infringement lawsuits by Qualcomm against Broadcom are already proceeding in San Diego. The lawsuits accuse Broadcom's GSM, WiFi and video encoder chips of infringing a total of nine Qualcomm patents.
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 2005 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 25, 2005, and most recent Form 10-Q.