U.S. Appeals Court Affirms Jury Verdict That Qualcomm Infringes Two Broadcom Patents
IRVINE, Calif. -- Sept 24, 2008 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, announced that the U.S. Court of Appeals for the Federal Circuit today upheld a unanimous jury verdict that Qualcomm Incorporated (Nasdaq: QCOM) cellular chips and software infringe two Broadcom® patents, and upheld the injunction entered by the district court on those two patents. The appeals court also rejected Qualcomm's request for a new trial. The court ruled that a third patent was invalid.
"The appeals court's decision is a major victory for Broadcom in our ongoing effort to protect our intellectual property," said David Rosmann, Broadcom Vice President, Intellectual Property Litigation.
Broadcom filed the infringement case in U.S. District Court in Santa Ana, Calif., in May 2005. On May 29, 2007, a unanimous jury returned a verdict finding that Qualcomm infringed three Broadcom patents and awarded past damages to Broadcom. Late last year, U.S. District Court Judge James V. Selna issued an injunction against Qualcomm designed to stop the company from continuing its infringement of the three Broadcom patents.
In August 2008, Judge Selna found Qualcomm in contempt of his injunction by, among other things, failing to pay royalties to Broadcom on infringing QChat® products. Citing the "egregiousness" of Qualcomm's conduct, the court ordered Qualcomm to pay Broadcom the gross profits Qualcomm has earned on its infringing QChat® products. Judge Selna further ordered Qualcomm to pay Broadcom's attorneys' fees in connection with the contempt proceedings.
The two patents that the appeals court upheld are U.S. Patent No. 5,657,317, which the jury found infringed by Qualcomm's EV-DO technology, and U.S. Patent No. 6,389,010, which the jury found infringed by Qualcomm's QChat chips and software. The third patent, held invalid, is U.S. Patent No. 6,847,686, which relates to video processing technology.
The Santa Ana case is one of several cases in which Broadcom continues to pursue claims against Qualcomm regarding patent infringement, anti-competitive behavior and fraud issues. Qualcomm has either lost or withdrawn all of the patent infringement cases it brought against Broadcom.
About Broadcom
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art, system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
Broadcom is one of the world's largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 2,800 U.S. and 1,200 foreign patents, more than 7,300 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com.
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