Broadcom claims appeals court victory in Qualcomm antitrust suit

By Colleen Taylor, Contributing Editor -- Electronic News, 9/5/2007

In another victory for wireless communications technology developer Broadcom Corp. over its rival Qualcomm Inc., the United States Court of Appeals has reversed a lower court's dismissal of two of Broadcom's antitrust claims against Qualcomm, reinstating the claims and returning them to U.S. District Court in New Jersey.

Broadcom first filed the antitrust case in July 2005, alleging that Qualcomm had abused the wireless technology standards-setting process and engaged in various other anticompetitive practices in the markets for cell phone technology and chipsets. However, the District Court granted Qualcomm's motion to dismiss the case in August 2006. At that time, Broadcom said it had no intention of backing down from the initial antitrust complaints, and vowed to seek an appeal of the dismissal.

On Tuesday, a three-judge appeals court granted, at least partially, Broadcom's request. According to the opinion, the court unanimously held that Broadcom can pursue two of its eight original claims for monopolization and attempted monopolization by Qualcomm. Ordering that the case proceed in the U.S. District Court for New Jersey, the court found that Broadcom had adequately alleged that "Qualcomm possessed monopoly power in the relevant market" and that "Qualcomm obtained and maintained its market power willfully, and not as a consequence of a superior product, business acumen, or historic accident."

Broadcom is seeking multiple remedies in the case, including the elimination of royalties on Qualcomm's patents, treble damages, attorneys' fees, and an end to Qualcomm's discriminatory and anticompetitive practices.

"We are pleased that we will get our day in court and will have the opportunity to show how Qualcomm's conduct violates our nation's antitrust laws," David A. Dull, Broadcom's senior VP of business affairs and general counsel, said in a statement.

For its part, Qualcomm expressed satisfaction that the court dismissed at least some of Broadcom's original claims—and expressed confidence that it would eventually be cleared of the remaining two. "Qualcomm vigorously disputes Broadcom's remaining allegations and is confident that judgment will ultimately be entered in its favor on the entire complaint, including both claims reinstated by the Court of Appeals' decision," Qualcomm said in a statement issued Tuesday.