Qualcomm Incorporated (Nasdaq: QCOM), a leading developer and innovator of Code Division Multiple Access (CDMA) and other advanced wireless technologies, today announced that Federal District Judge James V. Selna has issued an injunction against certain Qualcomm products for the United States market that were found to infringe three Broadcom patents. Qualcomm is reviewing the complex ruling and expects it will require further clarification from the court on various aspects of the ruling, including the effect of Verizon's existing license agreement with Broadcom.
The ruling provides a “sunset” provision that stays the order until Jan. 31, 2009 for QChat and 1x/EV-DO products that were found to infringe any of the three patents by providing Qualcomm a limited license, subject to an ongoing royalty payment. This license is limited to products that were sold to customers on or before the jury verdict was delivered on May 29, 2007. The '010 and '317 patents apply only to Qualcomm's QChat and 1x/EV-DO products. Qualcomm is continuing the development of work-around solutions for the '010 and '317 patents.
The order imposes an immediate injunction on WCDMA products for the U.S. market that were found to infringe the '686 video encoding patent. Qualcomm today announced the availability of new chips that have already been sampled to customers and it expects to have hardware and software work-arounds to the '686 patent commercially available in handsets before the end of the first calendar quarter of 2008.
While Qualcomm will attempt to obtain further relief and clarity from the courts on certain aspects of the order, the inability to obtain such relief will likely have an immediate, short-term impact as handset customers transition to new designs for WCDMA products relating to the '686 patent, medium-term impact to certain products in the development pipeline for the U.S. market, and longer-term ability to implement work-arounds in time for commercial availability of handsets by the January 2009 sunset expiration.
Qualcomm is evaluating all of its options, including seeking appropriate stays and appeals and will comply with all directives and orders of the court. The United States Patent Office has also instituted a reexamination of the validity of the '317 patent claims.
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 30, 2007, and most recent Form 10-Q.