SAN DIEGO-The Delaware Court of Chancery ruled Texas Instruments Inc.-and not Qualcomm Inc.-was in breach of the companies’ patent portfolio agreement.
The case is set to proceed to trial Aug. 16 to determine the extent of TI’s liability to Qualcomm for damages incurred as a result of the breach.
However, the court said Qualcomm will not be entitled to terminate the agreement signed in 2000 that gives Texas Instruments rights to Qualcomm’s CDMA patents because the breach was considered non-material.
“Although the court ruled that we cannot terminate TI’s license, we are pleased with all other aspects of the Chancellor’s decision, including his finding that it was TI and not Qualcomm that breached the agreement and that Qualcomm’s case against TI may proceed to trial,” said Steve Altman, executive vice president of Qualcomm.
TI said it was pleased the court decided the breach was non-material. “Qualcomm’s efforts to strip us of our rights under this cross-license agreement have failed,” said Joseph Hubach, TI’s vice president and general counsel.
Qualcomm sued TI for breach of the patent portfolio agreement last July, and TI responded in September by filing a lawsuit against Qualcomm alleging breach of the same agreement.
