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Qualcomm: Earlier Broadcom
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Qualcomm, based in San Diego, is the world’s second-largest chip supplier for mobile phones after Texas Instruments but earns much of its money from licensing fees on its patented technology. Broadcom, based in Irvine, is a newcomer to the cell phone business but has scored several legal victories against Qualcomm this year.
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The U.S. International Trade Commission has ordered a ban on new 3G handsets that contain Qualcomm chips, as these infringe on a Broadcom patent. It gets a little confusing… see phones that have already been sold in the U.S. are exempt, and this includes future sales of the same model. Further, current handset brands don’t need to change either. But any new 3G devices will have to forgo the Qualcomm chip.
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Qualcomm is shipping four new wireless chipsets that do not infringe on a video encoding patent held by competitor Broadcom. Qualcomm expects the WCDMA (Wideband Code Division Multiple Access) handsets containing the chips to go on sale in the U.S. by April, it said Wednesday.
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As ordered by US District Court Judge James V. Selna, the injunction prohibits Qualcomm from making, using and selling certain chipsets and software that infringe the three Broadcom patents. Qualcomm is ... barred from engaging in a range of marketing and customer support activities related to its WCDMA (Wideband Code Division Multiple Access) and EV-DO (EVolution-Data Only) chips, which are used to process data on high-speed wireless networks.
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Qualcomm said newer chipsets that do not infringe Broadcom patents are available to device manufacturers for product shipment in the United States. Chipsets for devices aimed at international markets are not affected by the ruling.
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Qualcomm plans to ask the judge to approve a system of royalty payments by its customers to Broadcom in lieu of ordering an injunction, said spokeswoman Christine Trimble. Earlier this year, Verizon Wireless agreed to pay Broadcom $6 for each phone with a patent-infringing Qualcomm chip — up to $40 million a quarter or $200 million over the life of the agreement.
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