Qualcomm Responds to Latest Broadcom Patent Loss

Qualcomm Inc. said it will offer workaround technology for some WCDMA cell phone chips after a court ruled Monday that the company stop selling or making the technology that infringes on three Broadcom Corp. patents.

Qualcomm also said Wednesday it will look at its legal options and ask the court to clarify some aspects of the injunction. But it did say the ruling would have “immediate, short-term impact” on the company.

The company said it is launching new chips that comply with the order and also will be releasing workaround technology for handsets before the end of the first quarter.

The ruling does allow Qualcomm to keep selling some chips for push-to-talk technology through the end of 2009 under a licensing agreement, which is subject to a royalty payment. The court said the sunset provision is designed to minimize disruptions to U.S. cellphone carriers.

Broadcom filed the suit in 2005.

Qualcomm shares were down 1.7 percent, or 66 cents, to $38.69 through midday trading Wednesday.

Broadcom Corp. www.broadcom.com
Qualcomm Inc. www.qualcomm.com