In a potentially serious blow to Qualcomm’s chipset and IP-licensing business, the U.S. International Trade Commission ordered a ban on new 3G handsets bearing Qualcomm chips that infringe on a Broadcom patent. The ruling could also have wide-ranging effects on the U.S. wireless industry, reports RCR News.
It was not immediately clear what brands and models of mobile handsets would be affected by the order, which applies to handsets imported after today that contain the offending Qualcomm chip.
The ITC’s majority found that, because the offending chips are incorporated into handsets overseas, then imported, banning the chips alone would not provide a material remedy to Broadcom. Broadcom declared itself “pleased” and “gratified” at the ITC decision.
“We have made it clear to Qualcomm that we are open to discussions regarding the potential for licensing of our patent,” Broadcom said in a statement. “The ball is in Qualcomm’s court.”
Qualcomm’s CEO Paul Jacobs said that the ITC decision was “wrong” and that his company would take two legal steps: it would immediately seek an emergency stay of the ITC order from the federal circuit court of appeals and, secondly, it would seek a presidential veto of the ITC decision.
Jacobs characterized the ITC decision as a blow to disaster preparedness, third parties in the wireless industry and consumers. He also said that “tens of millions” of handsets may be affected by the decision.
The ITC decision came Thursday, after a 3-2 vote. It is the latest move in a long saga between Qualcomm and rival Broadcom. In May, a federal court jury in California found that Qualcomm had infringed on three Broadcom patents, and awarded the latter company $19.6 million. The QUALCOMM/Broadcom litigation and the QUALCOMM/Nokia license negotiations and litigation are featured sections of the Qualcomm Legal Center.
Related DailyWireless articles include Qualcomm Jumps Shark? and Civil War in 4G.
