Jury clears Broadcom on Qualcomm patent infringement charge

A U.S. District Court jury on Friday found that Broadcom Corp. did not infringe on two Qualcomm Inc. patents for digital video compression used in high-definition set-top cable and satellite television boxes, as the latter had claimed. The jury also cited Qualcomm, in an advisory opinion to the judge in the case, for not disclosing its patents to a standard-setting entity.
The issues raised in the case, though not directly related to numerous disputes between the two parties in the wireless space, nonetheless reflect tensions and issues between the companies over cellular baseband chip technology that are due for resolution later this year.
In the current case, in addition to finding that Broadcom had not infringed on Qualcomm’s patents, as the latter had claimed, the jury issued two advisory opinions. According to Broadcom, the first opinion found that Qualcomm had “knowingly violated a duty to disclose its patents” to the Joint Video Team or its parent organization during the JVT’s preparation and adoption of an industry standard for video compression. The second opinion found that Qualcomm had failed to deal honestly and in good faith with the U.S. Patent and Trademark Office.
Qualcomm responded-in remarks clearly intended for investors and analysts-that because it does not currently have a licensing program for its patents in video compression, the jury’s decision would have no impact on the company’s licensing business.
On the jury’s advisory opinions to the case’s judge, Qualcomm noted that the judge had not yet set a date for his binding decision in the matter. Qualcomm was “disappointed” with the jury’s advisory opinions, according to the company.
“We have carefully followed the rules and IPR policies of the many standard-setting organizations in which we participate,” said Lou Lupin, general counsel for Qualcomm. “We believe a careful examination of the facts does not support either of the jury’s advisory verdicts.”
In its Friday press release, Broadcom cited other, upcoming legal cases in which it initiated litigation against Qualcomm, while Qualcomm listed its own view of the same matters.
In March, Broadcom said, a U.S. District Court is scheduled to address Broadcom’s claims that Qualcomm infringes on two Broadcom patents relating to Bluetooth technology. In May, another U.S. District Court is set to rule on Broadcom’s claims that Qualcomm infringes on three other patents in cellular technology, a claim confirmed last fall when a U.S. International Trade Commission judge ruled that Qualcomm’s baseband chips infringe five claims of a Broadcom patent. The ITC is set to issue remedies to that infringement in March.
For its part, Qualcomm said that the current case was but one of four actions it brought against Broadcom that are due for resolution this year. Qualcomm said that the four actions stemmed from Broadcom’s filings against Qualcomm, in which Qualcomm was “compelled to file litigation to enforce its patents against Broadcom in response to Broadcom’s attacks and not because Qualcomm was targeting the video compression industry as Broadcom has claimed.”
Qualcomm has doubled its line item for legal expenses to $200 million for the fiscal year ending in September to respond to numerous lawsuits brought by competitors, according to the company.