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IRVINE, Calif., June 22, 2007 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that the U.S. International Trade Commission (ITC) has denied a request by Qualcomm Incorporated (Nasdaq: QCOM) to stay the effectiveness of the ITC's recent exclusion order, which bans the importation into the United States of certain Qualcomm chips and cellular phones containing those chips that infringe a Broadcom patent.
Last year, an ITC administrative law judge and later the Commission itself found that Qualcomm's cellular baseband chips infringe five claims of U.S. Patent No. 6,714,983, which relates generally to power conservation in cellular phones. On June 7 the six-member Commission issued its Final Determination on a remedy for Qualcomm's infringement, ordering that certain Qualcomm chips, and future downstream products such as cellular phones that incorporate those chips, that infringe Broadcom's patent be barred from importation into the U.S. The ITC also entered a Cease and Desist Order prohibiting Qualcomm from engaging in certain activities related to the infringing chips.
"The protection of intellectual property is essential to American competitiveness and innovation in global markets, particularly in this age of advanced technology and huge worldwide consumer demand for electronic devices and equipment," said David A. Dull, Broadcom's Senior Vice President and General Counsel. "So far, Qualcomm has been found to infringe four different Broadcom patents, one tried in the ITC and three others tried before a federal jury last month in Santa Ana, Calif., which also found Qualcomm's infringement to be willful. In its proceeding, the ITC constructed a balanced compromise remedy following months of exhaustive study, mountains of evidence and two days of hearings. The ITC went to great lengths to provide a remedy that limited Qualcomm's on-going infringement without harming public heath and safety, competitive conditions in the U.S. economy, or U.S. consumers."
Mr. Dull continued, "As we have said before, Broadcom simply wants to be adequately compensated for the use of our intellectual property and to be able to compete fairly in the cellular markets on the merits and innovation of our products and technologies, as we do in every other market in which we compete. Yet Qualcomm, which collects about $3 billion a year from licensing its own patent portfolio and itself uses the ITC as a forum against competitors, refuses to provide appropriate compensation for the use of our I.P. We have repeatedly communicated to Qualcomm our readiness to negotiate a lasting resolution to these issues -- thus far to no avail. The burden of resolving these matters rests squarely with Qualcomm."
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 2006 revenue of $3.67 billion, and holds over 2,000 U.S. and 800 foreign patents, more than 6,000 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data.
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 www.broadcom.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Important factors that may cause such a difference for Broadcom in connection with our litigation with Qualcomm include, but are not limited to, our ability to prevail in the various federal and state lawsuits and other proceedings against Qualcomm, including any appeals; the ability of our patents to protect our intellectual property and products; our ability to enforce our intellectual property rights; and the risks associated with litigation in general, including the costs and time that must be devoted to litigation, the potential diversion of attention of management and key employees that may result from being engaged in litigation, and the possibility of adverse results.
Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
Broadcom®, the pulse logo, Connecting everythingA', and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Qualcomm® is a trademark of Qualcomm Incorporated. Any other trademarks or trade names mentioned are the property of their respective owners.
Broadcom Business Press Contact
Bill Blanning
Vice President, Global Media Relations
949-926-5555
blanning@broadcom.com
Broadcom Financial Analyst Contact
T. Peter Andrew Vice President, Corporate
Communications
949-926-5663
pandrew@broadcom.com
SOURCE Broadcom Corporation; BRCM Corporate
http://www.broadcom.com
