Broadcom to accept $19.6M damages award in Qualcomm patent battle

By Suzanne Deffree, Managing Editor, News -- Electronic News, 11/26/2007

Broadcom Corp. will walk away from one of its legal battles with Qualcomm Inc. with a $19.6 million damages award, half of what Qualcomm was expected to pay in a case involving three Broadcom patents.

In May, a federal jury in a U.S. district court in Santa Ana, Calif., found that Qualcomm had willfully infringed the three Broadcom patents related to 3G WCDMA and EV-DO cellular chips, and awarded Broadcom $19.6 million in damages. However, according to Broadcom, because the infringement was found to be "willful," U.S. District Judge James V. Selna was granted the discretion to increase the damages and in August opted to increase the fine required from Qualcomm by doubling the amount of damages initially awarded by the jury to $39.3 million.

Last week, Selna has let stand a jury verdict that found that Qualcomm infringes the three Broadcom patents, but vacated the jury's finding of willfulness. In doing so, the judge overturned his earlier award of double damages. Selna further gave Broadcom the option to either accept his final decision on the damages and thereby avoid a new trial, or to seek a new trial in which the issue of willfulness would be tried again, along with Broadcom's infringement claims.

For its part, Qualcomm expressed general satisfaction with the decision. “We are pleased with the court's ruling on willfulness and damages,” Alex H. Rogers, senior VP, legal counsel, Qualcomm, said in a statement.

Broadcom said it plans to inform the judge that it will not seek a new trial and will accept the $19.6 million in damages. Broadcom also plans to immediately pursue an injunction against Qualcomm's infringing products.

The patent case is just one of many legal battles the two communications companies are involved in. Among other issues, Broadcom has made antitrust claims against Qualcomm and the two companies are further embattled in an International Trade Commission  (ITC) fight that has seen a third-party importation ban put into affect and then removed against certain mobile phones that include Qualcomm chips found to infringe Broadcom power-saving technique patent.