Patent verdict Vs. Qualcomm affirmed

Chip maker Broadcom Corp. has confirmed that it was willing to accept the $19.6-million damage award in a patent dispute with Qualcomm Inc. The announcement came after federal judge James V. Selna gave the former the alternative of accepting the award, reduced from $39.3 million, or seek a new trial.

Broadcom and Qualcomm have locked horns in federal and state court and before the U.S. International Trade Commission. Broadcom also said that it will seek an injunction preventing Qualcomm from making or selling third-generation WCDMA and EV-DO cellular chips.

Earlier this year, a unanimous federal jury in Santa Ana, California found that Qualcomm infringed three Broadcom cellular phone baseband patents, and that the infringement had been willful, allowing the judge to double the damage award to Broadcom for past infringement from $19.6 million to $39.3 million.

Broadcom Corporation was founded in 1991 by Henry Samueli and Henry Nicholas. It became a public company in 1998 and now employs over 5,000 people worldwide. This American company is the supplier of integrated circuits (ICs) for broadband communications and is among the Worldwide Top 20 Semiconductor Sales Leaders.

Broadcom is one of the world's largest fabless semiconductor companies, with 2006 revenue of $3.67 billion, and holds over 2,300 U.S. and 1,000 foreign patents, more than 7,100 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video and data.

Qualcomm on the other hand was founded in 1985 by Irwin Jacobs and Andrew Viterbi. Based in San Diego, California, it is a wireless telecommunications research and development company.

Qualcomm said in a statement that it was pleased with the judge's decision. Broadcom shares rose 69 cents to $27.83. Qualcomm shares gained 7 cents to $40.53.