Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, stated today that the International Trade Commission (ITC) has decided to accept the Administrative Law Judge's (ALJ) initial determinations (“ID”) as to liability issues in the investigation. Accordingly, the Commission will not review the determination that Qualcomm has not infringed two of three Broadcom patents, including the patent Broadcom asserted against EV-DO (the '311 patent) and the patent Broadcom asserted against Qualcomm RF chips (the '675 patent). While the determination that Qualcomm infringes certain claims of the '983 patent will stand, under that patent Broadcom has accused functionality implemented by software only when a phone is completely out of network service and is not fundamental to CDMA.
As expected and as required pursuant to ITC procedure, the Commission will consider further briefing on the issue of remedies, including consideration of public interest concerns raised by Broadcom's unprecedented effort to derail the deployment of wireless broadband in the United States by precluding the importation of third-party handsets containing Qualcomm chips. Citing ITC precedent, and without yet considering public interest factors reserved to the Commission, the ALJ strongly recommended against any order barring the importation of handsets manufactured by Qualcomm's customers.
"We are pleased with the ITC's decision to leave undisturbed the ALJ's conclusions that we have not infringed two of the three patents," said Louis M. Lupin, senior vice president and general counsel for Qualcomm. "While Qualcomm will continue to contest validity and infringement as to the '983 patent on appeal and in district court, we are pleased that the ALJ recognized that the accused functionality is controlled by a limited and specific portion of software which Qualcomm does not import into the United States. Assuming the full Commission follows the well-reasoned recommendations of the ALJ as to remedies, the Commission's order would not have a disruptive effect on Qualcomm's business. In this case, public interest factors to be considered by the full Commission but that were not at issue before the ALJ weigh even more heavily against any order barring the importation of handsets made by third parties."
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.