Qualcomm's temporary reprieve

Olga Kharif
11 Oct 2006
00:00

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.

QCOM

) but also Verizon Wireless and Motorola (

MOT

) 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 (

VZ

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

BRCM

) patent.

UP TO THE COMMISSION.

KYO

), 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 (

TSM

) 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

Comments
No Comments Yet! Be the first to share what you think!