U.S. International Trade Commission Upholds Finding of Patent Infringement Against Qualcomm
Commission Will Now Decide Appropriate Remedy for Qualcomm's Infringement
WASHINGTON, Dec 11, 2006 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, announced today that the U.S. International Trade Commission (ITC) has upheld an initial determination that Qualcomm Incorporated (Nasdaq: QCOM) infringes five claims of a Broadcom® patent.
The Commission will now consider the appropriate remedy for Qualcomm's infringement, which could include a permanent exclusion order barring the importation into the United States of infringing Qualcomm chips, a cease and desist order barring Qualcomm from further use or sale of infringing products in the United States, and/or an exclusion order barring the importation into the United States of cellular phones containing infringing Qualcomm chips.
On October 10 ITC Administrative Law Judge Charles E. Bullock determined that all three patents asserted in the ITC proceeding by Broadcom were valid, and that one, U.S. Patent No. 6,714,983, was infringed by Qualcomm. The Commission's decision, issued December 8, rejected Qualcomm's challenges to those findings. The infringing products include cellular baseband processor chips that comprise Qualcomm's core suite of enhanced multimedia and convergence handset platforms.
"Qualcomm expects other companies to respect and pay dearly for the use of its intellectual property, but refuses to respect the intellectual property of others. The Commission's decision is an important step toward leveling that lopsided view," said David A. Dull, Broadcom's Senior Vice President and General Counsel. "We fully intend to prosecute this ITC case to conclusion, and to continue to aggressively enforce our patent rights against Qualcomm in other pending cases."
In the next step of the ITC process, the Commission will receive additional briefing from the parties regarding the appropriate remedy for Qualcomm's infringement, and will issue its determination on remedy by February 9, 2007. The President then has sixty days to approve or disapprove the remedy.
A recent IEEE Spectrum magazine survey ranked Broadcom at No. 5 among hundreds of companies worldwide rated for the power of their patent portfolios.
Broadcom Corporation is a global leader in semiconductors for wired and wireless communications. Our products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. Broadcom provides 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, one of the world's largest fabless semiconductor companies with annual 2005 revenue of $2.67 billion, 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 include, but are not limited to, our ability to secure a favorable Final Determination in the U.S. International Trade Commission proceeding against Qualcomm; our ability to prevail in the federal lawsuits against Qualcomm; 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 management's attention 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 everything® 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
Vice President, Public Relations
Broadcom Investor Relations
T. Peter Andrew
Vice President, Investor Relations
SOURCE Broadcom Corporation; BRCM Corporate
Bill Blanning, Vice President, Public Relations, +1-949-926-5555, firstname.lastname@example.org, or Investor Relations, T. Peter Andrew, Vice President, Investor Relations, +1-949-926-5663, email@example.com, both for Broadcom Corporation