Qualcomm - Legal Issues

Legal Issues

In April 2006, a dispute between Reliance Communications and Qualcomm over royalty fees cost Qualcomm approximately $11.7b in market capitalization. In July 2007, Reliance and Qualcomm decided to settle the matter and agreed to expand the use of CDMA technology in India.

In June 2007, the U.S. International Trade Commission blocked the import of new cell phone models based on particular Qualcomm microchips. They found that these Qualcomm microchips infringe patents owned by Broadcom. Broadcom has also initiated patent litigation in U.S. courts over this issue. At issue is software designed to extend battery life in chips while users make out-of-network calls. In October, an ITC administrative judge made an initial ruling that Qualcomm violated the Broadcom patent covering that feature and the commission later affirmed the decision. Sprint Nextel Corp. is using a software patch from Qualcomm to get around a U.S. government agency ban on new phones with Qualcomm chips. In August 2007, Judge Rudi Brewster held that Qualcomm had engaged in litigation misconduct by withholding relevant documents during the lawsuit it brought against Broadcom and that Qualcomm employees had lied about their involvement.

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