Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, stated today that the Administrative Law Judge (ALJ) in the Broadcom International Trade Commission (ITC) matter has determined that Qualcomm has not infringed two of the three patents (Broadcom patents '311 and '675) asserted by Broadcom and has recommended that no downstream remedies be implemented against the wireless handsets of third parties that incorporate Qualcomm chips and software.
The ALJ found infringement of certain claims of the third patent (Broadcom patent '983) and no infringement of the remaining claims of that patent. Broadcom asserted the '983 patent against the functionality of a wireless handset when it is not in service and not in range of network coverage. Although Qualcomm maintains that the '983 patent is invalid and not infringed and will ask the full Commission to reject the ALJ's recommendation on these issues, Qualcomm is exploring designs to replace the features accused of infringement with superior functionality.
“Qualcomm is gratified with the ALJ's determination that our company has not infringed two of the three Broadcom patents,” said Dr. Paul E. Jacobs, CEO of Qualcomm. “We appreciate that the ALJ took additional time to study the implications of a downstream remedy -- which Qualcomm and industry leaders demonstrated would be extreme and unwarranted -- and concluded that such a remedy was inappropriate. This is a positive step for the wireless industry and millions of consumers whose access to wireless broadband services is threatened by Broadcom's unfounded request for such a remedy. Qualcomm will continue to work with the industry to ensure that the Commission reaches the same conclusion on downstream remedy.”
Before the first of two hearings in the ITC matter, two of the five patents originally asserted by Broadcom were dismissed because Broadcom was found to have breached its contractual agreement to bring those claims in San Diego.
In other litigation between the parties, a federal district court in San Diego will hold a hearing on October 27, 2006 to finalize the scope of a preliminary injunction to issue against Broadcom for misappropriation of Qualcomm's trade secrets. Qualcomm also continues to press its patent infringement actions against Broadcom in San Diego federal court. The first of those cases is scheduled for a January 2007 trial and will address infringement of two Qualcomm patents on video compression technology by Broadcom's chipsets for cellular devices and set top boxes. A federal court recently dismissed as meritless antitrust claims brought by Broadcom in New Jersey.
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.
October 10, 2006October 10, 2006