Qualcomm has likely dodged a bullet that could have halted the import of some of its chips into the United States.
On Friday, the company said a judge recommended putting an end to an investigation conducted by the U.S. International Trade Commission that is looking into complaints filed by handset maker Nokia against Qualcomm.
Nokia, which sells more mobile phones than any other manufacturer in the world, asked the ITC in August to ban imports of phones that included Qualcomm chips that Nokia says infringe on its patents. The patents are related to technology that enhances device performance, lowers manufacturing costs and improves battery life.
Nokia and Qualcomm have been duking it out in the courtroom for several months after the companies failed to renew a licensing agreement that expired in April.
ITC Administrative Law Judge Paul Luckern recommended that the investigation end because the companies are already in arbitration to settle the dispute, Qualcomm said in a statement. The ITC has 30 days to review the decision. If the decision stands, the investigation will be terminated and Qualcomm will continue to be allowed to import its chips into the United States.
The judge's recommendation comes a few months after the ITC ruled that imports of Qualcomm chips that infringe on a patent from Broadcom would be banned from entering the U.S. The ban has been partially stayed while Qualcomm appeals the case. But service providers such as Verizon Wireless, which use Qualcomm chips in many of the cell phones they sell, has made a separate deal with Broadcom to ensure that phones on the Verizon network still make it into the country.
Qualcomm said Monday that its top lawyer is leaving the company.
Lou Lupin, who has served as Qualcomm's executive vice president and general counsel since 2000, is stepping down from his post, the company said. The company didn't provide any details about why Lupin is leaving. But his departure comes just a week after the company was dealt another legal blow in its ongoing battle with Broadcom.
Last week, the Bush administration declined to step in to veto a ban imposed by the Federal Trade Commission on importing cell phones using Qualcomm chips that have been found to infringe on a Broadcom patent. The FTC issued the ban in June. Qualcomm is still appealing the decision, which went into effect last week.
Carol Lam, who joined Qualcomm's legal team in February, will be the new general counsel for Qualcomm. Prior to her job with the chipmaker, Lam served as a U.S. Attorney for the Southern District of California.
Update 9:26 a.m. PDT Tuesday: Carol Lam will be the interim general counsel for Qualcomm while the company looks for a replacement. She will not be the permanent general counsel as the story above suggests.
The Bush administration has dealt another blow to chipmaker Qualcomm in its battle to dodge an International Trade Commission's ban on the importation of its advanced cell phone chips into the U.S.
On Monday, the Bush administration ruled it would not intervene and veto the ITC's decision, which was handed down in June. The ITC banned the importation of all cell phones using 3G chipsets from Qualcomm, because Qualcomm was found to have infringed on patents held by rival Broadcom.
The ban still hasn't gone into effect, but it looks like Qualcomm is running out of options. Last month, a U.S. Court of Appeals for the Federal Circuit said it didn't have jurisdiction in the case. And Verizon Wireless, the largest carrier impacted if the ban goes into effect, has already struck a deal directly with Broadcom to license its chips.
Stay tuned for more comments and analysis on what this latest development means for Qualcomm and the rest of the cell phone industry.
The U.S. International Trade Commission has denied Qualcomm's request for a stay on the ban imposed earlier this month on new 3G handset models that use Qualcomm chips, Broadcom announced Friday.
Qualcomm has been found to be infringing on several patents of rival Broadcom. On June 7, the six-member ITC ordered a ban on the import of all future models of cell phones using Qualcomm chips that violate these patents. The ban affects all future versions of handsets using Qualcomm's 3G chipsets.
Broadcom said it "simply wants to be adequately compensated for the use of our intellectual property." The company added that the "burden of resolving these matters rests squarely with Qualcomm."
Industry watchers say it's no surprise that the ITC stuck with its original decision.
When the ban was first announced, Qualcomm said it didn't expect the order would end up going into effect. President Bush still could veto the order. Qualcomm has also appealed to a federal court for a stay.
- prev
- 1
- next
