Broadcom stock up after ITC patent ruling
The US International Trade Commission has rejected claims made by GPS chip maker SiRF that Broadcom infringed two of its patents. Broadcom’s stock climbs more than 4% on the news.
By Suzanne Deffree, Managing Editor, News -- EDN, June 16, 2008
The US International Trade Commission (ITC) has rejected claims made by GPS chip maker SiRF Technology Holdings Inc that Broadcom Corp infringed two of its patents, encouraging a stock gain for the communications chip maker.
In its ruling Friday, the ITC said that SiRF’s GPS patents were not infringed by Global Locate, a company Broadcom acquired in July 2007 for $146 million. The ITC also found that the asserted claims of one of SiRF's patents at issue are invalid.
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Broadcom's own claims against SiRF went to trial in the ITC last April. An initial determination in that case is expected by August 8.
David Rosmann, Broadcom's VP of intellectual property litigation, noted in a statement from the company that SiRF had originally pursued four patent infringement claims against Global Locate in the ITC, but later dropped two of those claims prior to trial. Global Locate filed six claims of patent infringement against SiRF in the ITC, plus four claims in US District Court prior to its acquisition by Broadcom. Additionally, last month, Broadcom filed four additional, separate claims against SiRF in US District Court, according to Rosmann.
"We filed our May lawsuit after numerous good faith attempts by Broadcom to resolve the patent disputes between us and SiRF earlier this year," Rosmann said. "Prior to the ITC hearings, we were optimistic that we would be able to cooperatively resolve our disputes. However, as that prospect dimmed, we moved forward with additional steps to protect our intellectual property rights. We remain open to reaching a mutually acceptable resolution in these disputes."
SiRF did not return calls for comment to Electronic News.
Broadcom’s acquired Global Locate technologies are used in mobile phones from cellular handset makers and incorporated into products from TomTom NV, one of the largest personal navigation device vendors. Broadcom could have faced import restrictions on its products that use the questioned GPS technology had it lost the dispute.
