Qualcomm Inc. suddenly finds itself contemplating an escape hatch similar to one undoubtedly in the forefront of Scooter Libby’s thoughts these days: a presidential trump.
The potential domino effect of consequences from Broadcom Corp.’s patent complaint against Qualcomm at the International Trade Commission is breathtaking.
Not that the worst is necessarily imminent for Qualcomm, awaiting a scheduled May 8 remedy ruling. The ruling could range from a narrow import ban on infringing patents to a wholesale injunction prohibiting cellphones, personal digital assistants and other devices with CDMA2000 1x EV-DO and W-CDMA chips-the kind at the heart of businesses run by Verizon Wireless, Sprint Nextel Corp. and AT&T Inc.
And that’s just one of patent dustups ensnarling Qualcomm.
“It is certainly possible that the ITC will adopt an ALJ [administrative law judge] recommendation to ban the importation of only the chips, particularly in light of an alternative forum in federal court. But we believe certain commissioners are seeking to craft a remedy that includes a limited downstream exclusion order-an injunction against importing at least some handsets or other equipment,” stated analysts at Stifel Nicolaus & Co. Inc.
ITC decisions can be challenged in the U.S. Circuit Court of Appeals for the Federal Circuit, or the president can simply veto agency actions.
Unfortunately for Qualcomm, all the White House veto talk is about another fight, and presidential vetoes of ITC rulings are not common as, say, pardons.
But Qualcomm remains confident, perhaps in part because its legal team now includes Carol C. Lam, one of the eight U.S. attorneys fired by the Justice Department.
But Lam would be the first to warn Qualcomm, which leans Democrat in political money-giving, that just maybe politics could enter into the equation if the president were to scrutinize ITC punishment for the San Diego technology firm.
Pardon me
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