Federal District Court Rules on Alleged Violations of Injunction
SAN DIEGO, Aug 28, 2008 /PRNewswire-FirstCall via COMTEX News Network/ --
Qualcomm Incorporated
(Nasdaq: QCOM), today announced that the District Court for the Central
District of California issued a ruling on Broadcom's motion to find Qualcomm
in contempt of various aspects of the Court's December 31, 2007 injunction
ruling arising from the underlying trial last May.
While the Court found that Qualcomm had not violated the order on most of
the issues raised by Broadcom, and while the Court declined to enjoin Qualcomm
from continuing to make and sell WCDMA chips that implement a design around,
the Court did find certain violations.
The Court found that Qualcomm violated the injunction by continuing to
service and support WCDMA products that were made and sold between the date of
the trial verdict in May and the date the injunction first issued on December
31, 2007. Qualcomm interpreted the order as requiring it to pay royalties on
such products and provided service and support in reliance on that
interpretation. The Court disagreed and a new accounting will require
Broadcom to return the royalty payments. The Court also ruled that Qualcomm
employees must stop using phones containing the WCDMA chips sold between May
and December. Qualcomm is permitted to continue to service and support all
WCDMA products containing the design around and all products containing chips
sold before the verdict.
The Court also found that Qualcomm violated the injunction with respect to
service, support and exclusivity payments related to version 3.0 of its QChat
software. While Qualcomm has not sold version 3.0 since the date of the
injunction, and has released a design-around version of QChat, the Court found
that the U.S. revenue associated with version 3.0 service, support and
exclusivity was subject to royalty payments. The Court's order now requires
Qualcomm to pay profits related to that revenue.
While Qualcomm appreciates that the Court found in favor of Qualcomm on
most issues, it will appeal those issues on which the Court has ruled against
it.
Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing and
delivering innovative digital wireless communications products and services
based on CDMA and other advanced technologies. Headquartered in San Diego,
Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index and is a
2008 FORTUNE 500(R) company. For more information, please visit
http://www.qualcomm.com.
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties, including the Company's ability to successfully design and have
manufactured significant quantities of CDMA components on a timely and
profitable basis, the extent and speed to which CDMA is deployed, change in
economic conditions of the various markets the Company serves, as well as the
other risks detailed from time to time in the Company's SEC reports, including
the report on Form 10-K for the year ended September 30, 2007, and most recent
Form 10-Q.
Qualcomm is a registered trademark of Qualcomm Incorporated. All other
trademarks are the property of their respective owners.
Qualcomm Contacts:
Christine Trimble, Corporate Communications
Phone: 1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: 1-858-658-4813
Email: ir@qualcomm.com
SOURCE Qualcomm Incorporated
http://www.qualcomm.com