Qualcomm's temporary reprieve

Olga Kharif
11 Oct 2006

So, who won‾ On Oct. 10, Charles Bullock, an administrative law judge at the U.S. International Trade Commission (ITC), came out with a ruling on the Qualcomm-Broadcom case, which has kept Wall Street in suspense for weeks. His initial determination wasn't a worst-case scenario for either Qualcomm or Broadcom: The judge said that while Qualcomm infringed on five parts of one Broadcom patent, it did not infringe on two other patents under review.


) but also Verizon Wireless and Motorola (


) investors up at night. A ban on ready-to-use phones would have been 'disastrous' for Motorola because it relies heavily on Qualcomm's chips, and Verizon (


) could have been stopped from selling phones based on Qualcomm chips in the U.S., says Paul Sagawa, an analyst with Sanford Bernstein.


) patent.



), and others"”'occur outside of the U.S.,' says Alex Rogers, Qualcomm's vice-president and legal counsel. Qualcomm's baseband chips (the chips the judge ruled to have infringed on the Broadband patent) allow the processor inside a phone to talk to other parts like the antenna and to regulate power supply. The chips are made by foundries like Taiwan Semiconductor Manufacturing (


) in Asia and assembled into mobiles by handset makers there, too. The only chips Qualcomm imports into the U.S. today are used for internal testing, Rogers says.

'S&P Upgrades Qualcomm to Strong Buy'


Related content

Follow Telecom Asia Sport!
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.