Federal Judge Rules Qualcomm Waived Rights to Enforce Video Compression Patents Asserted Against Broadcom
Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that a federal judge in San Diego has ruled that Qualcomm waived its rights to enforce certain patents related to the H.264 video compression standard used in some high definition products. The court held that Qualcomm had deliberately concealed U.S. Patent Nos. 5,452,104 and 5,576,767 from the standard setting body responsible for developing the H.264 standard and therefore Qualcomm was precluded from enforcing the patents. The order follows a hearing held in June to determine remedies on the waiver issue in the case. The court also held that Qualcomm committed misconduct during the litigation by, among other things, failing to produce thousands of relevant documents until after the trial. In a separate order, the Court ordered Qualcomm to pay Broadcom's attorneys' fees and costs of suit.
Qualcomm acknowledges the seriousness of the Court's findings and reiterates its previous apology to the Court for the errors made during discovery and for the inaccurate testimony of certain of its witnesses. Qualcomm respectfully disagrees with the Court's conclusion that there were unwritten disclosure obligations above and beyond those set forth in the written rules of the standard setting body or that Qualcomm intended to mislead the H.264 standards setting organization or the court with respect to the two patents it asserted against Broadcom. Qualcomm intends to appeal the Court's ruling.
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 2007 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 24, 2006, and most recent Form 10-Q.
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