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Broadband & Mobile Featured Article
July 06, 2007
Broadcom to Administration: Don't Meddle in IP Dispute
By Spencer D. Chin TMCnet Web Editor
Portraying itself more as a victim than a company that has prevailed in a legal dispute, Broadcom (News - Alert) Corp. Thursday urged the Presidential administration not to overturn a recent International Trade Commission action against Qualcomm Inc. for infringing its patents, warning that a veto would be harmful to global efforts to strengthen IP
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Broadcom, a supplier of semiconductors for wireless communications, issued a detailed review of facts in its two-year long patent dispute with Qualcomm (News - Alert). The case has clearly turned in favor of Broadcom, as the ITC ruled last month Qualcomm cannot import baseband chips into the U.S. that violate Broadcom’s patents, and denied a subsequent appeal by Qualcomm for a stay on the decision.
“Overturning the ITC's remedy for Qualcomm's patent infringement would ultimately make it more difficult for U.S. companies to defend their I.P. rights and complicate the administration's IP policy initiatives,” said David Dull, senior vice president and general counsel for Broadcom, in a statement. “Encouraging a market-based solution to the issues presented in this case is in the best interests of U.S. companies and American consumers. Leaving the ITC order and remedy intact would also promote a level playing field that would foster competition, innovation and growth," Dull added.
Qualcomm protested the ITC’s ruling and appealed to the U.S. president to overturn the decision, contending the decision would harm the U.S. economy by stunting broadband deployment, and threaten public safety as new 3G phones that would incorporate the patent technology were needed for first responder emergency efforts.
phones that would incorporate the patent technology were needed for first responder emergency efforts. But Broadcom is showing no mercy, instead reiterating in its review that it was the victim of serial patent infringement by Qualcomm. A May 29 federal jury verdict in Santa Ana, Calif., found Qualcomm had willfully infringed four of Broadcom’s patents.
Broadcom added that ITC had constructed a balanced, compromise remedy that protects both public health and safety while maintaining competitive market conditions. The company emphasized that patent infringement was the key issue and Qualcomm’s ongoing patent violations clearly violate national interests.
In addition, Broadcom argued that Qualcomm does not deserve presidential assistance, maintaining that the wireless technology provider has a long history of strong-arming its customers and licensees. It argued that a presidential veto would further entrench Qualcomm’s monopolistic position.
Responding to Qualcomm’s allegation that the patent decision would adversely affect first responders, Broadcom said in the review that testimony at the ITC's hearings in March showed that radios – not cell phones -- are the backbone of America's emergency response system. It added that the ITC decision contains a grandfather clause applying to existing mobile phones containing the infringing chips, and exempts cellular PC cards entirely—thus ensuring that 3G devices are available to first responders and other users.
Broadcom also reiterated that Qualcomm has not offered any compensation for infringement of its ‘983 patent. The company added it continues to offer a license for Qualcomm or anyone else to use the patent, at royalty rates less than what Qualcomm has demanded for its patents.
Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.
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