Qualcomm and Broadcom Reach Settlement and Patent Agreement
SAN DIEGO and IRVINE, Calif., Apr. 27 /PRNewswire-AsiaNet/ --
-Agreement Ends Litigation Between the Companies Worldwide-
Qualcomm Incorporated (Nasdaq: QCOM) and Broadcom Corporation (Nasdaq:
BRCM) today announced that they have entered into a settlement and multi-year
patent agreement. The agreement will result in the dismissal with prejudice
of all litigation between the companies, including all patent infringement
claims in the International Trade Commission and U.S. District Court in Santa
Ana, as well as the withdrawal by Broadcom of its complaints to the European
Commission and the Korea Fair Trade Commission. Under the agreement, the
companies have granted certain rights to each other under their respective
patent portfolios. Qualcomm will pay Broadcom $891 million over a four-year
period. The terms of this agreement will not result in any change to
Qualcomm's 3G (e.g., CDMA2000(R), WCDMA and TD-SCDMA) and 4G (e.g., LTE and
WiMAX) licensing revenue model.
The terms of the agreement include, among other elements:
- Broadcom and Qualcomm agree not to assert patents against each other
for their respective integrated circuit products and certain other
products and services;
- Broadcom agrees not to assert its patents against Qualcomm's customers
for Qualcomm's integrated circuit products incorporated into cellular
products;
- Qualcomm's customers do not receive rights to any of Broadcom's patents
with respect to Qualcomm integrated circuit products incorporated into
non-cellular products and equipment;
- Qualcomm agrees not to assert its patents against Broadcom's customers
for Broadcom's integrated circuit products incorporated in non-cellular
products;
- Broadcom customers do not receive rights to any of Qualcomm's patents
with respect to Broadcom integrated circuit products incorporated into
cellular products and equipment;
- Qualcomm will pay Broadcom $891 million in cash over a period of four
years, of which $200 million will be paid in the quarter ending June 30,
2009. The agreement does not provide for any other scheduled payments between the
parties.
Other terms of the agreement are confidential.
"We believe that this resolution is positive for both Qualcomm and
Broadcom, our customers, our partners and the overall industry," said Dr.
Paul E. Jacobs, chairman and CEO of Qualcomm, and Scott A. McGregor,
president and CEO of Broadcom.
"The settlement will allow us to direct our full attention and resources
to continuing to innovate, improving our competitive position in this
economic downturn, and growing demand for wireless products and services,"
Jacobs said. "I am pleased that we have achieved this important settlement.
At a time when the wireless industry should be focused on moving forward, the
agreement removes uncertainty for Qualcomm and its customers."
"Today's settlement allows both companies to move on with their business
and compete in the semiconductor sector as two of its innovation leaders,"
McGregor said. "We have set aside our differences while addressing the needs
of our customers, our shareholders and the industry. In addition, the
companies have worked together to achieve their mutual goals of improving the
competitive dynamics of the industry."
About Qualcomm
Qualcomm Incorporated (Nasdaq: QCOM) is a leader in developing
and delivering innovative digital wireless communications products and
services based on CDMA and other advanced technologies. Headquartered in San
Diego, Calif., Qualcomm is included in the S&P 100 Index, the S&P 500 Index
and is a 2009 FORTUNE 500(R) company. For more information, please visit
About Broadcom
Broadcom Corporation is a major technology innovator and global leader in
semiconductors for wired and wireless communications. Broadcom(R) products
enable the delivery of voice, video, data and multimedia to and throughout
the home, the office and the mobile environment. We provide the industry's
broadest portfolio of state-of-the-art system-on-a-chip and software
solutions to manufacturers of computing and networking equipment, digital
entertainment and broadband access products, and mobile devices. These
solutions support our core mission: Connecting everything(R).
Broadcom is one of the world's largest fabless semiconductor companies,
with 2008 revenue of $4.66 billion, holds over 3,300 U.S. and over 1,300
foreign patents, and has more than 7,500 additional pending patent
applications, and one of the broadest intellectual property portfolios
addressing both wired and wireless transmission of voice, video, data and
multimedia.
Broadcom is a FORTUNE 500(R) company headquartered in Irvine, Calif., and
has offices and research facilities in North America, Asia and Europe.
Cautions regarding Forward Looking Statements:
All statements included or incorporated by reference in this release,
other than statements or characterizations of historical fact, are
forward-looking statements. These forward-looking statements are based on
Qualcomm's and Broadcom's current expectations, estimates and projections
about their respective businesses, respective management's beliefs, and
certain assumptions made by Qualcomm and Broadcom, all of which are subject
to change. Forward-looking statements can often be identified by words such
as "anticipates," "expects," "intends," "plans," "predicts," "believes,"
"seeks," "estimates," "may," "will," "should," "would," "could," "potential,"
"continue," "ongoing," similar expressions, and variations or negatives of
these words. Examples of such forward-looking statements include, but are not
limited to, references to the anticipated benefits to Qualcomm, Broadcom and
other third parties related to the settlement and references to the effect of
the agreement on Qualcomm's 3G and 4G licensing revenue model. These
forward-looking statements are not guarantees of future results and are
subject to risks, uncertainties and assumptions that could cause actual
results to differ materially and adversely from those expressed in any
forward-looking statement.
The respective Annual Reports on Form 10-K, subsequent Quarterly
Reports on Form 10-Q, recent Current Reports on Form 8-K, and other
Securities and Exchange Commission filings, of Qualcomm and Broadcom discuss
important risk factors that could affect their respective businesses, results
of operations and financial condition. The forward-looking statements in this
release speak only as of this date. Neither Qualcomm nor Broadcom undertakes
any obligation to revise or update publicly any forward-looking statement for
any reason, except as required by law. All statements made by or concerning
Qualcomm or Broadcom, respectively, are made solely by such applicable party
and such party is solely responsible for the content of such statements.
Qualcomm is a registered trademark of Qualcomm Incorporated.
CDMA2000 is a registered trademark of the Telecommunications Industry
Association (TIA USA). Broadcom(R), the pulse logo, Connecting everything(R),
and the Connecting everything logo are among the trademarks of Broadcom
Corporation and/or its affiliates in the United States, certain other
countries and/or the EU. All other trademarks are the property of their
respective owners.
Qualcomm Contacts:
Christine Trimble, Corporate Communications
Phone: +1-858-845-5959
Email: corpcomm@qualcomm.com
John Gilbert, Investor Relations
Phone: +1-858-658-4813
Email: ir@qualcomm.com
Broadcom Contacts:
Broadcom Business Press Contact
Bill Blanning
Vice President, Global Media Relations
Phone: +1-949-926-5555
Email: blanning@broadcom.com
Broadcom Financial Analyst Contact
T. Peter Andrew
Vice President, Corporate Communications
Phone: +1-949-926-5663
Email: andrewtp@broadcom.com
SOURCE: Qualcomm Incorporated; Broadcom Corporation
CONTACT: Christine Trimble
Corporate Communications
+1-858-845-5959
corpcomm@qualcomm.com, or
John Gilbert
Investor Relations
+1-858-658-4813
ir@qualcomm.com
both of Qualcomm Incorporated; or
Broadcom Business Press
Contact, Bill Blanning, Vice President
Global Media Relations
+1-949-926-5555
blanning@broadcom.com, or
Broadcom Financial Analyst
Contact, T. Peter Andrew, Vice President
Corporate Communications
+1-949-926-5663
andrewtp@broadcom.com
(QCOM)
(BRCM)
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