Legal News

Qualcomm and Broadcom shake hands, promise no more fighting

By Richard Binder

Qualcomm has agreed to pay $891 million to Broadcom over four years as part of a settlement to end a bitter dispute over handset-technology patents.

According to a joint statement released Sunday, the companies will license each other?s patents and pledged not to sue each other again. Broadcom agreed to drop antitrust complaints it has filed against Qualcomm in Europe and South Korea. The agreement removes a threat hanging over Qualcomm, which had been forced to limit some of its phone-chip sales after losing a trial to Broadcom in May 2007.

Don Rosenberg, Qualcomm's general counsel, added in an interview that the deal preserves a key element of his company's business model: Qualcomm will be able to seek patent royalties from cellphone makers that use Broadcom chips. Royalties from handset makers are a key contributor to Qualcomm's profits.

Click these for details.

Full post as published by Legal Pad | LA on April 27, 2009 (boomark / email).