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US Court Of Appeals Affirms Qualcomm Ruling

December 2, 2008

A U.S. federal court on Monday ruled against – yet slightly in favor of – Qualcomm Inc in a lawsuit filed in 2005 against Broadcom Corp.

The case began three years ago when Qualcomm accused Broadcom of infringement of its patents involving advanced video compression technology, which enables the delivery of video over mobile phones.

The U.S. Court of Appeals for the Federal Circuit agreed with a lower court that Qualcomm failed to disclose certain patents to a standards-setting body.

The ruling was “slightly favorable to Qualcomm” because of the part on enforceability, Charter Equity Research analyst Ed Snyder said.

But the lower court, the U.S. District Court of the Southern District of California, had also ruled the patents were “unenforceable against the world.”

The appeals court said “unenforceable against the world” was too broad, and the ruling was sent back for the lower court to narrow its scope to certain products.

Broadcom said it would continue to pursue the issue in other cases against Qualcomm.

“We believe Qualcomm has violated the rules of the cellular standards bodies as well, a fact we are determined to bring to light in our other pending cases,” David Rosmann, a vice president for intellectual property litigation at Broadcom, said in a statement.

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