May 16, 2006SAN DIEGO
Qualcomm products mentioned within this press release are offered by Qualcomm Technologies, Inc. and/or its subsidiaries.
Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that the staff attorney for the International Trade Commission assigned to the Broadcom-Qualcomm matter recently posted a brief on the ITC's Web site which some industry analysts and investors have misunderstood. The brief is not a decision or an initial determination by the Commission or by the Administrative Law Judge (ALJ) responsible for hearing the matter. No initial decision has been made. Instead, the brief sets forth the views of the staff attorney, who has no decision-making authority, following the first phase of the hearing. The staff attorney assigned to an investigation takes and argues positions on the issues in essentially the same way as the parties. The arguments of the staff attorney, who is not a member of the ALJ's staff, can be accepted or rejected by the Administrative Law Judge and the Commission, just as the arguments of Broadcom or Qualcomm can be accepted or rejected. Qualcomm continues to believe that the patents are not infringed and that they are invalid.
The typical sequence of events in an ITC investigation is as follows. The ALJ conducts an evidentiary hearing following which the parties and the staff attorney submit briefs arguing their positions. The ALJ then issues an initial determination for review by the full Commission. The Commission reviews the ALJ's initial determination and can review the evidence taken at the hearing for itself. It then issues its own decision which may adopt, reject or modify the ALJ's initial determination. The Commission's decision may be further reviewed by the president, following which an appeal of the decision may be taken to the Federal Circuit Court of Appeals, the same appellate court that hears appeals of patent cases tried in the United States District Courts.
This ITC investigation has been divided by the ALJ into two separate hearings. Before the first hearing, two of the five patents originally asserted by Broadcom were dismissed. The first hearing which addressed the issues of validity and applicability of the remaining three patents concluded in March. No initial determination has been issued by the ALJ on these issues. The deadline for any such determination is August 21, 2006, after the second hearing is complete.
The second hearing is set to commence July 6, 2006 before any determination of the validity and infringement issues has been made. That phase will concern the appropriate remedies, if any. Several handset manufacturers and operators have intervened in the remedy phase to explain to the ITC that many of the remedies being sought by Broadcom would be improper under ITC precedent. The ALJ's initial determination, due by August 21, will also address the remedies issues. The Commission will then complete its review by December 21, 2006, and presidential review, if any, must be completed 60 days thereafter. The timing of any appeals to the Federal Circuit would be governed by the rules and schedule of that court.
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 2006 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.